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Checked Oct. 21, 2026

UT ยท Checked Oct. 21, 2026

Prediction market law in Utah

In litigation

Utah beat Kalshi in federal court, expanded its gambling ban to cover proposition bets, and sued Kalshi in state court on October 20, 2026.

Kalshi sued Utah officials in February 2026 to block enforcement of state gambling law, and the legislature enacted HB 243 defining proposition bets as gambling, effective May 6, 2026. On August 4, 2026, Judge Robert Shelby granted summary judgment to Utah, finding that federal commodities law does not displace the state's gambling ban; the Tenth Circuit denied Kalshi an injunction pending appeal on September 8, and the appeal remains pending. On October 20, 2026, Attorney General Derek Brown sued Kalshi entities and two trading firms in state court, seeking an injunction backed by geolocation, fee disgorgement and restitution. No court has yet ordered Kalshi to stop serving Utah users.

Open questions for Utah

Federal appeals, 10th Cir.Open

Will the Tenth Circuit reverse Utah's win over Kalshi?

No decision date set78 days since the appeal was docketed

Appeal docketed Aug. 5Pending

Resolves Yes if the court reverses or vacates the district court's judgment for Utah in KalshiEx v. Cox, No if it affirms.

Tenth Circuit No. 26-4100. Source: Court docket

Timeline of state actions

  1. State lawsuit, Kalshi, other

    Attorney General Brown sued Kalshi, four Kalshi subsidiaries and two Pennsylvania-based trading firms that supply pricing and liquidity in Utah's Third District Court, alleging that Kalshi operates as an unlicensed gambling business. The state seeks an order barring Kalshi from taking Utah wagers, enforced through a court-approved geolocation tool, plus fees it estimates at $30.6 million to $61.2 million and about $5.5 million in restitution for Utah users' losses.

    Source: The Salt Lake Tribune

  2. Court order, Kalshi

    The Tenth Circuit denied Kalshi's emergency motion for an injunction pending appeal, leaving Utah free to enforce while the appeal proceeds.

    Source: SBC Americas

  3. Other development, Kalshi

    Kalshi's appeal was docketed at the Tenth Circuit (No. 26-4100).

    Source: Justia Dockets (10th Cir. No. 26-4100)

  4. Court order, Kalshi

    Judge Robert J. Shelby granted summary judgment to Utah and closed the case, holding that federal commodities law does not displace Utah's power to ban gambling, including as applied to Kalshi's sports contracts.

    Source: Utah Attorney General

  5. Legislation

    HB 243 (Gambling Revisions) took effect, adding proposition bets on an individual action, statistic or occurrence to Utah's definition of gambling.

    Source: Utah Legislature (HB 243 enrolled copy)

  6. Operator lawsuit, Kalshi

    Kalshi filed a preemptive federal suit against Gov. Spencer Cox, Attorney General Derek Brown and other officials, seeking to block enforcement of Utah's gambling laws against its contracts.

    Source: CoinStats prediction market legal tracker

Resolved questions

  1. Will the Tenth Circuit shield Kalshi from Utah while it appeals?

    The court denied Kalshi's emergency motion for an injunction pending appeal. Tenth Circuit No. 26-4100. Source: SBC Americas

    No

Laws and bills

  • HB 243 (2026 General Session)EnactedMarch 2026

    Gambling Revisions

    Sponsored by Rep. Joseph Elison and Sen. Brady Brammer, the law defines 'proposition bet' and makes it part of Utah's definition of gambling; effective May 6, 2026. It does not mention event contracts or prediction markets by name.

    Source: le.utah.gov

Court cases

  • KalshiEx LLC v. CoxU.S. District Court for the District of Utah, 2:26-cv-00151On appeal
  • KalshiEx v. CoxU.S. Court of Appeals for the Tenth Circuit, 26-4100Pending
  • Derek Brown v. Kalshi Inc.Utah Third Judicial District Court, Salt Lake CountyPending
  • Derek Brown, Attorney General, on behalf of the State of Utah v. Kalshi Inc. et al.Third Judicial District Court, Utah

Sources

  1. CoinStats prediction market legal tracker
  2. Utah Legislature (HB 243 enrolled copy)
  3. Utah Attorney General
  4. Justia Dockets (10th Cir. No. 26-4100)
  5. SBC Americas
  6. The Salt Lake Tribune
  7. Sports betting status