The state of Utah is moving forward with legislation that will restrict prediction market platforms, including Kalshi and Polymarket, by designating proposition betting as gambling. The bill, known as HB243, has successfully passed both the Utah House and Senate, reaching the governor's desk on February 27, 2023.
Governor Spencer Cox is expected to sign the bill into law, which aims to curb sports-related betting activities within the state. He expressed concerns about the impacts of such platforms, particularly on younger audiences, stating that they effectively create a casino environment accessible to all.
In response to the advancing legislation, Kalshi has initiated legal action against Utah, arguing that its offerings qualify as federally regulated derivatives and should not fall under state gambling laws. The company is also pursuing similar legal measures in Iowa, citing potential enforcement risks. Kalshi’s position is backed by the Commodity Futures Trading Commission (CFTC), which claims jurisdiction over prediction markets.