Utah officials can proceed with enforcing state anti-gambling laws against predictive markets following a federal court victory against Kalshi. The decision, announced by the Utah Attorney General on August 4, 2026, affirms the state's ability to prosecute online gambling and its promotion under existing statutes established in 2025.
Attorney General Secures Victory
The Utah Attorney General announced that the state successfully defeated Kalshi in federal court, confirming that Utah maintains the authority to enforce its anti-gambling laws. This legal victory ensures that the state can continue to regulate and prosecute activities involving online gambling and the promotion of such services within its borders.
Existing Gambling Prohibitions
The state's ability to take enforcement action is supported by Utah Code Section 76-9-1402, which was enacted on May 7, 2025. Under this law, participating in gambling, fringe gambling, or online gambling is classified as a class B misdemeanor, though it becomes a class A misdemeanor for repeat offenders. The code also mandates that Utah must opt out of online gambling if federal law allows states to do so.
Penalties for Online Promotion
In addition to participating in gambling, Utah law also targets the promotion of such activities. According to Utah Code Section 76-9-1404, which also took effect on May 7, 2025, an individual commits online gambling promotion by intentionally providing or offering to provide online gambling to anyone in the state. This offense is classified as a third-degree felony.
Digital Service Exemptions
The legal framework provides specific exemptions for certain digital service providers. Under Section 76-9-1404, the law does not apply to internet service providers, hosting companies, public telecommunications services, or internet advertising services, provided they merely transmit, route, or store material at the direction of a user without selecting the content themselves.
Federal Court Oversight
The legal battle involving Kalshi has been overseen by the United States District Court for the District of Utah. The court's proceedings are managed by Judge Robert J. Shelby, whose chambers are located in Salt Lake City.
