Federal Court Upholds Utah's Ban on Proposition Betting, Kalshi Plans Appeal
A federal court has ruled in favor of Utah's enforcement of its ban on proposition betting, a decision that impacts the prediction market company Kalshi. U.S. District Judge Robert Shelby sided with Utah, stating that federal laws regulating commodities trading do not override the state's gambling ban. This ruling supports Utah's legislative stance against prediction markets, which have seen a rise in sports betting activities. Kalshi, which allows users to buy event contracts on future outcomes, argued that its platform is regulated by the federal Commodity Futures Trading Commission and should not be subject to state-level restrictions. However, the court found that state gambling laws can coexist with federal regulations. Utah Attorney General Derek Brown celebrated the decision, emphasizing the state's commitment to protecting families from gambling. Kalshi plans to appeal the ruling, maintaining that prediction markets fall under federal jurisdiction. 
