Salt Lake City, Mar 12: Utah, which has maintained one of the strictest bans on gambling in the United States for more than a century, is facing a new legal challenge involving online prediction market platforms such as Kalshi and Polymarket.
State authorities are moving toward enacting legislation aimed at restricting such platforms, which allow users to place wagers on a range of future events, from weather outcomes to geopolitical developments, using smartphones.
Utah has long prohibited most forms of gambling, including casinos, lotteries and racetrack betting. The restrictions are widely linked to the conservative values of The Church of Jesus Christ of Latter-day Saints, which considers gambling a vice that can lead to addiction and social harm.
The legal dispute centres on whether states can apply their gambling laws to prediction market platforms. Kalshi has approached a federal court seeking an order to prevent Utah from enforcing its gambling restrictions on the platform. A judge has yet to issue a ruling on the request.
Courts in different US states have delivered mixed early decisions on similar disputes. Judges in Nevada and Massachusetts have issued preliminary rulings supporting state efforts to restrict the platforms, while courts in New Jersey and Tennessee have ruled in favour of Kalshi.
Kalshi maintains that its platform differs from traditional sportsbooks or casinos because users place bets against each other rather than against a bookmaker or “house”.
The US Commodity Futures Trading Commission (CFTC) has supported the company’s position, asserting that prediction markets fall under its regulatory jurisdiction.
The agency argues that states cannot block such platforms solely on moral grounds.Meanwhile, the debate has also highlighted Utah’s longstanding opposition to gambling. Since becoming a US state in 1895, Utah has prohibited most forms of wagering and, along with Hawaii, maintains some of the strictest anti-gambling laws in the country.
The state does not allow casinos, sports betting or even participation in multi-state lottery games such as Powerball or Mega Millions.
Observers say the state’s policies are strongly influenced by religious and cultural values. About half of Utah’s population belongs to the Church of Jesus Christ of Latter-day Saints, whose teachings discourage gambling on the grounds that it encourages attempts to gain wealth without work and can harm individuals and families.
