Utah is one of only two states in the country that bans gambling. Despite this, online prediction markets such as Kalshi are still accessible in the state.
Kalshi tried to preemptively sue Utah when they initially faced pushback. Representatives of the app said Kalshi is subject to federal, not state, law and that the federal government’s Commodity Futures Trading Commission has authority over the markets Kalshi runs.
Other prediction markets operating in the state, along with Kalshi, say the event contracts users agree to are legally sanctioned financial “swaps.”
A federal judge in August ruled on the state’s side, allowing Utah to regulate the markets further. Kalshi, in response, appealed the ruling to the U.S. Circuit Court of Appeals.
“Since statehood, Utah’s constitution has prohibited gambling. That prohibition covers in-person and online gambling,” said Utah Attorney General Derek Brown in a statement with the Salt Lake Tribune. “Sports betting marketed as a prediction market or anything else is still sports betting. And it is still illegal.”
Despite several months since Gov. Cox called for the end of prediction market use in Utah, discussions surrounding gambling in Utah have increased following the semiannual General Conference for the Church of Jesus Christ of Latter-day Saints. An apostle for the church reiterated the church’s stance against gambling, including online prediction markets.
“The smartphone has transformed gambling from an occasional activity requiring a trip to a casino, racetrack, or lottery kiosk into an activity available continuously, privately, and almost anywhere,” Apostle D. Todd Christofferson said. “This has led to an explosion in gambling.”
Author: Andrew Streeter
Photo courtesy of Reuters
Editor: Hannah Clove
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