Utah to Ban Prediction Markets, State-Federal Regulatory Dispute Escalates

According to CoinWorld, Utah HB243 has been submitted to the governor’s office. The bill defines “prediction betting” as gambling, aiming to prevent prediction market platforms like Kalshi and Polymarket from operating in the state. Governor Spencer Cox has stated plans to sign the bill. Kalshi previously filed a lawsuit against Utah, asking a federal judge to block the state’s enforcement of gambling restrictions, arguing that its event contracts are derivatives regulated by federal law rather than gambling. The CFTC claims exclusive jurisdiction over such markets under the Commodity Exchange Act. On the same day, Kalshi also filed a lawsuit against Iowa. Previously, a federal judge in Ohio dismissed Kalshi’s request to prevent state regulators from enforcing gambling laws. CFTC Chairman Michael Selig stated that the agency has regulatory authority over prediction markets and warned it will defend this jurisdiction in court. Selig also described well-functioning prediction markets as “truth machines,” believing that when participants support their views with funds, the markets can produce signals more reliable than traditional polls.