Judge Robert Shelby

A federal judge ruled that Utah can enforce its anti-gambling laws on prediction markets such as Kalshi, rejecting the company's request to block state restrictions. The ruling affirmed that Utah's ability to regulate these platforms under state law, which bans proposition betting in sports, is not prevented by existing federal law. Although Kalshi plans to appeal, the decision represents a victory for states attempting to curb the popularity of prediction markets.

A federal judge rejected Kalshi’s request, ruling that Utah can enforce its anti-gambling laws on prediction markets like Kalshi and Polymarket. The decision addresses the ongoing conflict between states and the federal government over whether these betting platforms fall under finance regulation or state gambling law. State law in Utah already bans proposition betting, a key source of revenue for leading prediction markets.