Major Prediction Market Operators Restrict Utah Services Following Criminal Charges Against Kalshi

Five prediction market operators have limited their offerings in Utah after the state filed criminal charges against Kalshi. DraftKings, FanDuel, Fanatics, Robinhood and PrizePicks withdrew or restricted certain event contracts, with the extent varying by platform. The changes followed 14 criminal charges filed on 28 October against Kalshi and its co-founders Tarek Mansour and Luana Lopes Lara, according to reporting by Yogonet International.

Operator Restrictions Take Effect in Stages

DraftKings began restricting sports, political, novelty and certain other event contracts on 28 October for users located in Utah, while keeping financial contracts on stocks, commodities and cryptocurrencies available. Existing positions remain open and will settle normally. FanDuel implemented similar limits on 30 October for its Predicts platform, preserving contracts tied to economic benchmarks.

Fanatics halted all new trades in its Markets offering on 4 November. Robinhood barred new positions in sports, cultural, election and political contracts from 2 November but left financial and economic markets open. PrizePicks pulled Team Picks and Culture Picks products covering sports, politics, entertainment and culture, yet retained its Player Picks daily fantasy product.

Utah Attorney General Derek Brown welcomed the moves. "Utah law is clear: gambling is illegal in our state," Brown said. His office highlighted efforts to shield residents from gambling-related harm and warned that individuals who promote, organize or profit from illegal gambling face potential enforcement.

Jurisdictional Clash Between State and Federal Rules

The charges include 13 felony counts alleging violations of Utah gambling laws through sports-related transactions. The matter arose from an undercover investigation in which an agent opened an account and executed 12 sports-related trades. Kalshi contends its event contracts fall under federal oversight rather than state gambling statutes.

The US Commodity Futures Trading Commission filed a separate lawsuit to stop Utah from enforcing its laws against federally regulated prediction market operators. The conflict centers on the reach of state authority where event contracts involve sporting outcomes. While operators have voluntarily scaled back in Utah, the criminal proceedings and broader jurisdictional dispute remain unresolved. Resolution will shape how these platforms navigate competing regulatory demands going forward.