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DraftKings, FanDuel Pull Sports Prediction Markets From Utah After Kalshi Charges

Utah’s criminal case against Kalshi was followed by prediction-market restrictions at DraftKings, FanDuel and PrizePicks. Fanatics Markets plans to stop trade placement on Nov. 4.
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Utah filed 14 criminal charges against Kalshi, including 13 felony counts, as major operators restricted prediction-market offerings in the state.

DraftKings, FanDuel and PrizePicks removed categories of event contracts, according to SBC Americas. Fanatics Markets said it would stop trade placement in Utah on Nov. 4.

The changes come amid competing state and federal lawsuits over authority to regulate prediction markets.

Which Utah Event Contracts Are Affected?

DraftKings confirmed its restrictions were in place by Thursday afternoon. Customers physically located in Utah could no longer access sports, political, novelty and certain other event contracts through DraftKings Predictions.

“Customers are still able to trade financial event contracts, including those related to stocks, commodities, and cryptocurrency,” DraftKings said.

Existing positions in affected markets will remain open and settle normally, the company added.

FanDuel removed sports, politics and novelty contracts from FanDuel Predicts in Utah effective Friday morning. Economic benchmarks and key financial indicators remained available. Existing customer positions will stay open and settle as expected.

PrizePicks disabled Team Picks and Culture Picks, leaving its daily fantasy sports-style Player Picks available in Utah.

Underdog still listed Utah among its prediction-market regions as of the report’s publication Friday.

Utah and Federal Agencies Clash Over Enforcement

Utah’s charges targeted Kalshi and co-founders Tarek Mansour and Luana Lopes Lara. The case includes one misdemeanor count alongside the felony counts.

Utah Atty. Gen. Derek Brown urged other companies operating in the state to read the complaint and follow Utah law.

“Gambling has been illegal in Utah since statehood,” Brown said.

Kalshi sued Utah officials in February. It argued that the Commodity Exchange Act supersedes state authority and prevents enforcement of Utah’s constitutional gambling ban against its products.

A federal judge rejected that argument in August. The Tenth Circuit denied Kalshi’s emergency request for an injunction pending appeal in September.

More from gamingtoday.com

– Louisiana Bettors Sue DraftKings and FanDuel Over Parlay Practices
– Utah Charges Kalshi and Co-Founders as CFTC Challenges State Ban
– Citizens: US Online Casino Growth Slows to Record-Low 12% in Q3

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Source: As reported by SBC Americas.

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