Gov. Spencer Cox said on Tuesday that he wants to block prediction markets from the state, even if it means going to court, calling the apps “gambling, pure and simple.” Cox also rejected the federal agency’s claim of authority over the platforms.
Michael S. Selig, Commodity Futures Trading Commission Chairman, announced via X that the commission is filing a friend-of-the-court brief to defend its jurisdiction.
“Today the CFTC is taking an important step to ensure that these markets have a place here in America,” Selig wrote. “To those who seek to challenge our authority in this space, let me be clear, we will see you in court.”
Prediction market platforms allow people to buy and sell contracts based on events such as local elections and sports. Each contract is an agreement that gets paid out if the predicted outcome occurs, which Cox argues that it doesn’t differ from standard gambling platforms.
Cox took to X to respond to Selig’s statement, saying, “These prediction markets you are breathlessly defending are gambling—pure and simple. They are destroying the lives of families and countless Americans, especially young men.” Cox said. “They have no place in Utah.”
Platforms like Kalshi, Polymarket, and Coinbase have grown extremely popular in recent years. All three are currently legal in Utah, with Kalshi and Coinbase legal in all states. The prediction market industry has grown by almost 13,000% from the start of 2024 to the end of 2024 according to Ethan Bauer of Deseret News. The apps’ trading volume went from $100 million monthly to over $13 billion.
Author: Conner Dean
Photo: Cheyne Gateley, Adobe Stock
Editor: Hannah Clove
news@suunews.net
