CFTC Sues Utah to Override Kalshi Gambling Ban

The Trump administration’s CFTC is suing Utah to block enforcement of its gambling ban against Kalshi, making Utah the 10th state targeted in such litigation. Utah previously defeated Kalshi in federal court but is now pursuing enforcement through state courts. Utah’s Attorney General has characterized Kalshi as an online casino masquerading as a prediction market, noting that Utah has prohibited gambling for 130 years and remains one of only two states with constitutional bans on gaming.

The confrontation centers on competing claims of authority: the CFTC asserts that federal regulation of prediction markets preempts state gambling laws, while Utah moves to enforce its decades-old prohibitions. The outcome could affect other CFTC-registered platforms offering prediction markets in Utah, including Kalshi’s primary rival Polymarket and sports betting services DraftKings and FanDuel.