DraftKings and FanDuel Exit Utah Following Kalshi Criminal Charges

Several prominent prediction markets have ceased operations in Utah after the state filed 14 criminal charges against Kalshi and its co-founders, Tarek Mansour and Luana Lopes Lara, according to reporting from The Salt Lake Tribune.

The legal action against Kalshi, which occurred on Oct. 28, triggered a rapid withdrawal of other major platforms from the state’s digital marketplace. DraftKings announced it was ceasing operations in Utah on the same day the charges were filed. FanDuel Predicts followed on Oct. 30, and Fanatics stopped all trading on its Fanatics Markets platform this past Wednesday.

Utah Attorney General Derek Brown stated that the state’s laws regarding gambling are unambiguous. “Utah law is clear: gambling is illegal in our state,” Brown said in a statement to The Tribune.

After Kalshi criminal charges, other predictive markets pull out of Utah

The crackdown follows reports that these platforms had continued to operate within the state despite a complete ban on all forms of gambling. The Attorney General’s office noted that the withdrawal of these large online apps is a responsive outcome to the state’s enforcement efforts. “It is the right outcome for Utah families who want gambling’s harms kept out of their homes and communities,” Brown said.

While the platforms are pulling out of the state, they are leaving certain financial avenues open for existing users. DraftKings informed Utah consumers via email that while sports, political, and novelty event contracts are no longer available, customers can still trade financial event contracts involving stocks, commodities, and cryptocurrency.

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Any open positions held by users in the affected markets will remain open and settle as normal. Users retain the ability to sell these positions before settlement, though they are prohibited from opening new positions while physically located in Utah.

FanDuel reported similar restrictions to The Tribune. The company stated that while sports, political, and novelty event contracts are unavailable, customers may still trade on economic benchmarks and key financial indicators. Like DraftKings, FanDuel noted that existing positions will remain open and settle as expected.

Utah files criminal charges against Kalshi as fight over sports predictions escalates

The Attorney General’s office has not ruled out pursuing individual customers of these applications. In a statement to The Tribune, the office said, “If you’re promoting, organizing, and profiting from gambling operations or gambling in Utah, we urge you to stop now. We reserve the right to enforce the law against anyone who violates it.”

The sudden exit of these platforms highlights the growing tension between decentralized prediction markets and state-level regulatory frameworks. As these companies pivot their service offerings to exclude prohibited event types, the legal boundary between “event contracts” and illegal gambling remains a central point of contention for state regulators.