Odaily Planet Daily report: Utah’s HB243 bill has been submitted to the Governor’s office, defining “prop bets” as gambling with the aim of preventing prediction market platforms such as Kalshi and Polymarket from operating in the state. Governor Spencer Cox has indicated plans to sign the bill.
Kalshi previously filed a lawsuit against Utah, asking a federal judge to block the state from enforcing gambling restrictions on it, arguing that its event contracts are derivatives regulated at the federal level rather than gambling, and that the CFTC has exclusive jurisdiction over such markets under the Commodity Exchange Act. On the same day, Kalshi also filed a lawsuit against Iowa. Previously, a federal judge in Ohio had dismissed Kalshi’s request to prevent the state’s regulators from enforcing gambling laws.
CFTC Chair Michael Selig stated that the agency has regulatory authority over prediction markets and warned that it will defend this jurisdiction in court. Selig also described well-functioning prediction markets as a "truth machine," arguing that when participants back their views with money, the markets generate more reliable signals than traditional polls.