Utah Set to Block Prediction Markets Like Kalshi and Polymarket

Utah is moving to block prediction market platforms such as Kalshi and Polymarket with the passage of HB243, which defines “proposition betting” as gambling. Governor Spencer Cox has indicated he will sign the bill, expressing concerns about the accessibility of these platforms, particularly to young people. Kalshi has already filed a lawsuit against Utah, arguing that its event contracts are federally regulated derivatives under the authority of the Commodity Futures Trading Commission (CFTC), and therefore exempt from state gambling restrictions. The CFTC has asserted its authority over prediction markets, with Chairman Michael Selig describing them as potential “truth machines” for forecasting future events. Kalshi has also sued Iowa, anticipating potential enforcement actions, but recently lost a similar case in Ohio. This situation highlights a growing tension between states seeking to regulate these markets as gambling and federal authorities claiming regulatory oversight.

(Source：Cointelegraph)