Federal Judge Upholds Utah’s Enforcement of Anti-Gambling Laws Against Prediction Markets

POLICY WIRE — Salt Lake City, Utah — A federal judge has ruled that Utah can enforce its stringent anti-gambling laws against prediction markets, including Kalshi and Polymarket. The decision comes amid growing scrutiny of these platforms, which allow users to place wagers on a variety of outcomes, from political events to economic indicators.

The ruling, issued by U.S. District Judge Tena Campbell, permits Utah authorities to apply existing gambling statutes to these digital markets. “The state’s anti-gambling laws are clear and applicable to these types of activities,” Judge Campbell stated in her ruling. “Prediction markets must comply with state regulations or face legal consequences.”

Kalshi and Polymarket have argued that their platforms are not traditional forms of gambling but rather sophisticated prediction tools. However, the court found that the nature of these markets, where users bet on outcomes with monetary stakes, aligns with the state’s definition of gambling.

Utah’s Attorney General, Sean Reyes, welcomed the decision. “This ruling reinforces our commitment to protecting Utah residents from the harms associated with gambling,” Reyes said. “We will continue to monitor — and enforce compliance with our state laws.”

Representatives from Kalshi — and Polymarket have yet to comment on the ruling. The decision may prompt other states with strict gambling laws to review their regulations concerning prediction markets.

Reporting by Policy-Wire (PW)