2 Major Apps Pull Out of Utah Prediction Markets After Kalshi Legal Blow

DraftKings stopped allowing customers in Utah to place money on its prediction markets on November 2.

The company confirmed the change to FOX 13 News. Utah residents can no longer buy contracts for sports, political events, or novelty topics. They can still trade financial contracts related to stocks, commodities, and cryptocurrency.

DraftKings said in a statement that open positions in affected markets will settle as normal. The company stated it remains committed to operating responsibly and transparently.

Fanatics followed suit with its own announcement. The platform will stop offering event contracts to people in Utah effective November 4. A Robinhood spokesperson told FOX 13 News that Utah customers can still access finance and economics categories. They will be restricted from entering new positions on sports, culture, elections, and politics starting November 2.

These moves follow criminal charges filed last week by the Utah Attorney General's Office. The state charged Kalshi, its CEO, and its COO with felony-level gambling violations. A judge has ordered the executives to appear in Salt Lake City's 3rd District Court in December.

Attorney General Derek Brown said the departures show the companies are responsive to state efforts. Brown stated that Utah law clearly defines gambling as illegal. He called the outcome right for families who want to keep gambling harms out of their communities. His office will continue to enforce the law against any company bringing gambling into the state.

The legal dispute centers on whether prediction markets constitute gambling or fall under federal oversight. Utah leaders argue the markets violate the state's constitutional ban on gaming. Kalshi and other firms argue they are governed by federal law and overseen by the Commodity Futures Trading Commission.

Kalshi sued Utah preemptively to block state enforcement. A federal judge refused the request, and a federal appeals court later denied a similar bid to stop the state's actions. Dozens of states filed a brief supporting Utah in that case. The Trump administration filed a brief siding with Kalshi. The CFTC also sued Utah, claiming it has authority over prediction markets. The state filed a civil lawsuit against Kalshi alongside the criminal charges, which carry potential prison sentences for the executives if convicted.