DraftKings and Fanatics Cut Off Utah Users After Kalshi Charges

Residents of Utah can no longer place new bets on sports, political events, or cultural outcomes through two of the country’s largest prediction market apps. DraftKings and Fanatics announced they are removing specific contract types for users physically located in the state. This move follows the Utah Attorney General’s Office filing criminal charges against Kalshi, a leading competitor, and two of its top leaders.

DraftKings confirmed the change to FOX 13 News on Monday. The company stated that effective immediately, sports, novelty, political, and certain other event contracts are unavailable to Utah customers. Users in the state can still trade financial event contracts tied to stocks, commodities, and cryptocurrency. Open positions in the affected markets will remain active and settle as normal, according to the company.

Fanatics, which operates a prediction market section on its platform, said it would stop offering new contracts to Utah residents effective November 4. A Robinhood spokesperson, who manages Fanatics prediction markets, noted that customers will still have access to finance and economics categories. The restriction applies to sports, culture, elections, and politics.

The state filed felony-level gambling charges against Kalshi, CEO Laremi Kuku, and COO Mike Hryb. The three are ordered to appear before a judge in Salt Lake City’s 3rd District Court in December. The charges assert that the companies operated an illegal gambling business in violation of state law. If convicted, the executives face potential prison sentences.

Attorney General Derek Brown said the state is responding to what he described as the clear stance of Utah law. Brown stated that gambling is illegal in the state and that some of the largest online gambling apps are now pulling out. He called the withdrawals a responsive measure that keeps the harms of gambling out of Utah homes and communities. Brown said the office will continue enforcing the law against any company that brings gambling to the state.

Utah political leaders have long argued that prediction markets are a form of gambling, which violates the state’s constitutional prohibition on gaming. Kalshi and other operators counter that these products are not gambling but are instead governed by federal law and overseen by the Commodity Futures Trading Commission. The companies rely on a legal framework that distinguishes these contracts from traditional casino bets.

Kalshi preemptively sued Utah to stop the state from enforcing its rules. A federal judge denied Kalshi’s request to block enforcement, allowing the state to proceed. A federal appeals court also refused to issue an injunction against the state’s actions. Dozens of states filed a friend of the court brief siding with Utah in this legal dispute. The Trump administration filed a similar brief supporting Kalshi.

The federal government has taken multiple actions to back Kalshi in its fight against Utah. The CFTC filed a lawsuit against the state, claiming it has authority over prediction markets. The Utah Attorney General’s Office also filed a civil lawsuit against Kalshi, separate from the criminal charges. These legal actions create a parallel track of civil and criminal liability for the company and its leadership.

The exit of DraftKings and Fanatics leaves Kalshi as the primary large-scale prediction market operator still fully active in Utah, though its legal standing is under direct attack. The companies involved are watching the December court date to determine if the criminal charges will hold up or if the state’s interpretation of gaming law will be challenged further in the courts.