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- Utah Attorney General Derek Brown has issued a stark public warning that sports betting and prediction markets remain strictly illegal under the state’s blanket gambling ban, telling The Salt Lake Tribune that “sports betting marketed as a prediction market or anything else is still sports betting.”
- Despite the state’s aggressive stance—bolstered by a recent federal court victory against Kalshi and a 2026 legislative update explicitly targeting proposition betting—major platforms including DraftKings, FanDuel, PrizePicks, and Kalshi continue to operate within Utah. The public clash has prompted gaming law experts to warn that the operators are treading in dangerous legal territory as the industry waits to see if the attorney general will escalate the warnings into direct enforcement actions.
Utah officials say sports betting and prediction markets remain illegal in the state, even as DraftKings, FanDuel, PrizePicks and Kalshi continue operating there.
That tension matters because Utah and Hawaii are the only two U.S. states with blanket bans on all forms of gambling, making Utah a test case for how far prediction market and daily fantasy operators can push into states with the strictest prohibitions.
Utah Attorney General Derek Brown told The Salt Lake Tribune that “sports betting marketed as a prediction market or anything else is still sports betting. And it is still illegal.” The Tribune reported that companies and some legal observers argue those products sit in a gray area or, in Kalshi’s case, may fall under federal oversight.
Utah’s stance clashes with active operators
The Tribune said Kalshi sued Utah earlier in 2026, arguing that the Commodity Futures Trading Commission has authority over its markets. A federal judge ruled for Utah in August 2026, and Kalshi has appealed to the U.S. Circuit Court of Appeals.
The same report said DraftKings, FanDuel and PrizePicks also remain available in Utah despite the state’s broad anti-gambling stance.
Gaming law expert Rich Trachok told the Tribune that prediction markets meet the basic test for gambling because users wager on an outcome determined by chance to win a prize. “If you have those three [things], I don’t care; it’s still gambling,” he said.
Former Nevada Gaming Control Board investigator Dennis Gutwald similarly said the companies are operating, but “I don’t think they are allowed to.” He added that operators may continue offering products until regulators act.
Legislature updated law as scrutiny grows
The Tribune also reported that the Utah Legislature passed House Bill 243 during the 2026 General Session, updating state gambling law to address proposition betting.
Salt Lake County District Attorney Sim Gill said the measure reflects how gambling law is adapting to new technology and new ways people engage with wagering. He also told the Tribune that any referred cases would be evaluated based on the facts and applicable law.
The debate has also drawn attention beyond regulators. During General Conference in 2026, D. Todd Christofferson condemned gambling and specifically referenced prediction markets, saying the gambling industry’s business model is built on customers losing money.
What comes next is less clear. Utah’s position is explicit, but the Tribune noted open questions remain around whether the attorney general will take specific action against DraftKings, FanDuel, PrizePicks or similar operators, and how Kalshi’s federal appeal will be resolved.
Source: As reported by Shreyas Laddha.
