Four of the largest US sports betting operators — DraftKings, FanDuel, Fanatics and PrizePicks — are restricting their prediction market offerings in Utah after the state filed 14 criminal charges against Kalshi. The pullbacks affect sports, political, novelty and other event contracts, with the extent of the restrictions varying by operator.
DraftKings Predictions immediately discontinued sports, political, novelty and “certain other event contracts” for customers physically located in Utah, while allowing continued trading of financial event contracts linked to stocks, commodities and cryptocurrencies. According to the company, existing positions in the affected Utah markets will remain open and settle normally.
FanDuel Predicts discontinued sports, political and novelty contracts in Utah from Friday morning. Customers in the state can still trade contracts tied to economic benchmarks and financial indicators, and existing positions will remain open and settle as expected.
Fanatics has gone furthest, saying Fanatics Markets will stop accepting trades in Utah entirely from Nov. 4, 2026. “Due to recent developments, we are stopping trade placement on Fanatics Markets in the state of Utah on Nov. 4,” the company said in a statement.
PrizePicks has disabled its Team Picks and Culture Picks in Utah while continuing to offer its daily fantasy sports-style Player Picks. Team Picks cover sporting events, leagues, teams and season-long outcomes, while Culture Picks include contracts linked to politics, entertainment and pop culture.
The trigger is Utah’s criminal case against Kalshi, which the state has framed as a straightforward application of its gambling prohibition. “Gambling is illegal in Utah, whether you place the bet, run the game, or promote it,” Brown said. “Calling it a ‘prediction market’ doesn’t change what it is, and being federally registered doesn’t put a company above the law.” Utah’s constitution prohibits the state legislature from authorizing any game of chance, lottery or gift enterprise.
At a press conference, Brown issued a broader warning to the sector. “For other companies that are operating here in Utah, I would ask two things. Number one, read this complaint, and number two, we’re simply asking you to follow the law, follow Utah law. Gambling has been illegal in Utah since statehood,” Brown said. The state’s enforcement action has focused primarily on sports and political contracts, although Utah also sought restrictions on additional categories including cultural and mention markets.
The retreat comes as the federal government lines up against Utah. The Commodity Futures Trading Commission and the US Department of Justice have filed a lawsuit against the state seeking to block its gambling enforcement against prediction markets, with the CFTC arguing that the Commodity Exchange Act gives it exclusive jurisdiction over federally regulated event contracts and preempts state gambling restrictions. Crypto.com and its affiliated OG.com platform filed a lawsuit against Utah on the same day as the CFTC and DOJ action.
Utah has substantial support from other jurisdictions. A bipartisan coalition of 37 states and Washington, D.C. filed an amicus brief urging the 10th US Circuit Court of Appeals to uphold an August ruling allowing Utah to enforce its gambling laws against Kalshi. US District Judge Robert Shelby rejected Kalshi’s argument that federal law preempts Utah’s gambling restrictions, and the appeals court subsequently denied Kalshi’s emergency request to block enforcement while its appeal proceeds.
Kalshi has also lost ground elsewhere. The Ninth Circuit rejected its rehearing bid, leaving Nevada free to enforce its gambling laws, with Kalshi having until February 2 to appeal. The exchange’s valuation nonetheless surged to $40 billion after a $1 billion funding round, amid the mounting legal challenges.
The Utah withdrawals underline a widening split in strategy. DraftKings, FanDuel and Fanatics have taken a more cautious approach than Kalshi and Polymarket, limiting sports event contracts to states where they do not operate licensed sportsbooks, while Kalshi and Polymarket have continued challenging state gambling restrictions in court. Meanwhile the sector continues to expand on the federal track: Sporttrade has secured CFTC registrations covering trading and clearing for a sports event contract exchange, and US Senator Ted Cruz plans to file a bill seeking state control over sports prediction markets.
This article was produced with AI assistance and reviewed under the GamblingZine editorial verification process.
Sources
- DraftKings, FanDuel, Fanatics scale back Utah prediction markets after Kalshi charges — Independent reporting (published 2026-11-03)
- www.yogonet.com — Authoritative secondary source
- www.yogonet.com — Authoritative secondary source
- www.yogonet.com — Authoritative secondary source
Reporting verified against the sources above; retrieval timestamps are preserved in the editorial record.