- Sen. John Curtis introduced a bill to ban sports betting and "casino-style" games on prediction markets.
- Prediction markets are regulated by the Commodity Futures Trading Commission and have been able to avoid state and federal anti-gambling laws.
- Kalshi criticized the bill, claiming it protects gaming monopolies and limits consumer choice.
SALT LAKE CITY — Utah Sen. John Curtis on Monday announced legislation that would prevent online prediction markets from offering contracts that look like sports betting or "casino-style" games.
The bill, known as the Prediction Markets Are Gambling Act, would apply to companies that are regulated by the Commodity Futures Trading Commission. The agency was set up to regulate derivatives markets trading in agricultural and other commodities, but also oversees online prediction markets such as Kalshi and Polymarket that allow users to purchase event contracts and receive a payout if they correctly guess the outcome.
Both platforms have exploded in popularity recently, offering users a chance to bet money on almost any outcome, from sporting events to elections. Because they are regulated by the Commodity Futures Trading Commission, they have been able to avoid state and federal anti-gambling statutes, even as some leaders — including Utah Gov. Spencer Cox — say their contracts are no different than sports betting.
But that could change under Curtis' bill.
"Too many young people in Utah are getting exposed to addictive sports betting and casino-style gaming contracts that belong under state control, not under federal regulators," the Utah Republican said. "Our bipartisan legislation clarifies regulatory jurisdiction, ensuring that states can maintain their authority over sports betting and casino gaming. The Prediction Markets Are Gambling Act is about respecting states' authority, protecting families and keeping speculative financial products out of spaces where they don't belong."
California Democrat Sen. Adam Schiff introduced the bill with Curtis to "eliminate this backdoor" allowing prediction markets to operate.
"Sports prediction contracts are sports bets — just with a different name," Schiff said. "And yet, these contracts are currently offered in all 50 states in clear violation of state and federal law. Rather than enforce the law, the CFTC is greenlighting these markets and even promoting their growth."
A Kalshi spokesperson pushed back on the bill, saying that it would incentivize offshore prediction markets, "where no regulation exists."
"It's clear this bill is motivated by casino interests that are threatened by competition. They're more worried about protecting their monopolies than protecting consumers," the company told KSL via email. "Sports trading on regulated prediction markets offer a fairer choice to consumers, with no house that restricts winners and hooks people the more they lose."
"We should let competition run its course instead of protecting monopolies," the statement continued.
Polymarket did not respond to a request for comment.
The Biden administration sought to limit the types of contracts that could be listed on prediction market apps, but President Donald Trump has opened the door to expanded contract offerings, per NPR. Donald Trump Jr. was named a strategic adviser to Kalshi the week before his father took the oath of office last year. He also advises for Polymarket, which his venture capital fund has invested in.
Last month, Commodity Futures Trading Commission Chairman Mike Selig said the agency filed court briefs to defend its "exclusive jurisdiction" over prediction markets amid legal challenges.
The introduction of the bill comes as several states, including Utah, have sought to rein in betting on prediction markets. Utah's Legislature passed a bill earlier this year clarifying that proposition bets — or bets placed on specific players or events within a game — fall under the state's constitutional ban on gambling.
Cox has called prediction markets "gambling — pure and simple," and Utah Attorney General Derek Brown argued in a recent op-ed that the markets are "the newest iteration of gambling."
Kalshi sued Utah last month in response to the bill and the comments by Cox and Brown, claiming any actions by the state would preempt federal regulations.
Several other states are involved in ongoing legal disputes with prediction markets, and Arizona became the first state to file criminal charges against Kalshi last week. The state accused the company of running an illegal gambling business.
Cox told reporters last week that he was "excited" by Arizona's charges when asked whether Utah would follow suit, saying, "We're looking at those, certainly having those conversations."
"I've been pretty blunt about how I feel about what these companies are doing — these gambling companies that are pretending to be something else," the governor said. "It's, you know, walks like a duck and quacks like a duck — it's a duck. And I think everybody agrees with that, except the people who are making billions off of trying to destroy our kids."
He said the attorney general is looking at the issue and said he's "hopeful that if there is a violation, that he would follow suit."
