Trump administration sues Utah to block state action against Kalshi
The case tests whether a federal regulator's view of prediction markets can override a state's long-standing gambling ban.
The Trump administration has moved to stop Utah from enforcing its gambling ban against Kalshi, which makes Utah the tenth state the federal government has sued over prediction markets. Utah's attorney general filed suit in state court last week, asking for an order that would bar Kalshi from offering wagers on sports, elections, politics and other events. He argued that Kalshi runs what amounts to an online casino and labels it a prediction market, a practice he said breaks state law. Utah prohibits gambling under both its statutes and its constitution, a position the attorney general framed as 130 years in the making. The dispute pits a federal regulator's view of these markets against a state's long-standing prohibition.
Why it matters
The dispute sets federal oversight of prediction markets against a state prohibition that rests on both statute and constitution. For Kalshi and users in Utah, the outcome will decide whether sports, election and political wagers can continue there. Utah is also the tenth state the federal government has sued over these markets, so the ruling could shape how other states pursue similar cases.
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