DraftKings, FanDuel, Fanatics and PrizePicks are restricting their prediction market offerings in Utah following the state’s decision to file 14 criminal charges against Kalshi, escalating the legal battle over sports event contracts.
The changes affect sports, political, novelty, and other event contracts, although the extent of the restrictions varies by operator. DraftKings and FanDuel have retained financial event contracts, while Fanatics plans to stop accepting trades in the state entirely from Nov. 4.
DraftKings Predictions immediately discontinued sports, political, novelty, and “certain other event contracts” for customers physically located in Utah.
Customers can continue trading financial event contracts linked to stocks, commodities, and cryptocurrencies. Existing positions in affected markets will remain open and settle normally, DraftKings said.
FanDuel Predicts made a similar move, discontinuing sports, political and novelty contracts in Utah from Friday morning. Customers can still trade contracts tied to economic benchmarks and financial indicators, while existing positions will remain open and settle as expected.
Meanwhile, Fanatics Markets will stop accepting trades in Utah on Nov. 4.
“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 also 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 withdrawals follow Utah Attorney General Derek Brown’s decision to file 14 criminal charges against Kalshi, including 13 felonies and one misdemeanor, accusing the company and its co-founders Tarek Mansour and Luana Lopes Lara of illegally promoting online gambling.
According to the charging documents, an undercover state investigator opened a Kalshi account and placed 12 sports contracts in September.
“Gambling is illegal in Utah, whether you place the bet, run the game, or promote it. Calling it a ‘prediction market’ doesn’t change what it is, and being federally registered doesn’t put a company above the law,” Brown said.
Utah’s constitution prohibits the state legislature from authorizing any game of chance, lottery or gift enterprise. Brown previously filed a civil lawsuit against Kalshi and affiliated entities on Oct. 20, seeking to block the company’s event contracts and recover profits allegedly generated through illegal gambling.
Brown also warned other prediction market operators to review the complaint and comply with state law.
“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,” he said at a press conference.
The enforcement action has primarily focused on sports and political contracts, although Utah also sought restrictions on additional categories including cultural and mention markets.
The dispute has drawn intervention from federal regulators. The Commodity Futures Trading Commission (CFTC) and the U.S. Department of Justice have filed a lawsuit against Utah, seeking to block the state’s gambling enforcement against prediction markets. The CFTC argues 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 also filed a lawsuit against Utah on the same day.
Meanwhile, a bipartisan coalition of 37 states and Washington, D.C., filed an amicus brief urging the 10th U.S. Circuit Court of Appeals to uphold an August ruling allowing Utah to enforce its gambling laws against Kalshi.
U.S. District Judge Robert Shelby had rejected Kalshi’s argument that federal law preempts Utah’s gambling restrictions. The appeals court subsequently denied the company’s emergency request to block enforcement while its appeal proceeds.
The developments highlight differing approaches among prediction market operators. DraftKings, FanDuel and Fanatics have taken a more cautious approach, limiting sports event contracts to states where they do not operate licensed sportsbooks. Kalshi and Polymarket, meanwhile, have continued challenging state gambling restrictions in court.