DraftKings, Fanatics, Robinhood Curb Utah Contracts
Several prediction market operators have stopped offering sports and political event contracts to people in Utah, days after the state's attorney general filed criminal charges against Kalshi and two of its executives. FOX 13 in Salt Lake City reported the moves on Monday, November 2.
None of the companies tied the decision directly to the case, but the timing is hard to miss. The steps come as the prediction markets fight between states and operators moves into criminal court.
What Each Operator Said
DraftKings confirmed to FOX 13 that sports, novelty, political and certain other event contracts are no longer available on DraftKings Predictions for customers physically in Utah, effective immediately.
Financial contracts tied to stocks, commodities and crypto remain open. Existing positions stay open and will settle as normal. The company does not offer sports betting in Utah, where the law forbids it.
Fanatics said its prediction markets will stop offering contracts to people in Utah from November 4. Robinhood told FOX 13 it will stop customers in Utah opening new positions on sports, culture, elections and politics from November 2.
Finance and economics contracts stay available, and a spokesperson said the company does not believe the contracts break any state law.
The Kalshi Case Behind It
Utah's attorney general filed charges last week against KalshiEX, its chief executive and its chief operating officer, according to the Fox 13 report. They face felony-level gambling charges and have been told to appear in Salt Lake City's Third District Court in December.
Our earlier piece on how a federal judge let Utah enforce its gambling ban against Kalshi covers the ruling that cleared the way. The charges are allegations, and Kalshi has argued in other cases that its contracts are not gambling.
Utah's Position
Attorney General Derek Brown said in a statement to FOX 13 that Utah law is clear that gambling is illegal in the state and that some of the largest online gambling apps are now pulling out.
He said he appreciated the companies responding to his office's efforts and called it the right outcome for Utah families. He added that the office will keep enforcing the law against any company that brings gambling into the state.
Utah's leaders say prediction markets are gambling, which the state constitution prohibits. Kalshi and other operators argue the contracts sit under a separate regulatory regime. Our report on the attorney general's gambling donations looks at another strand of the fight.
What Comes Next
The restrictions are narrow in one sense. Financial contracts are still available on the platforms that spelled out their changes, and the statements describe changes for customers physically located in Utah.
Kalshi's court date in December will be the next marker. The operators have not said whether they plan to restore the contracts, so the December hearing is the next date to watch.
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