DraftKings, FanDuel, Fanatics Halt Prediction Markets in Utah

Late last week, DraftKings, FanDuel, and Fanatics pulled their prediction market offerings from Utah after the legal battle between the state and the companies intensified.

According to Legal Sports Report, DraftKings confirmed that traders in Utah can no longer trade on sports, political, novelty, and some other markets.

Also, FanDuel shut down similar markets on Friday at 10 a.m., and Fanatics will on November 4.

“Due to recent developments, we are stopping trade placement on Fanatics Markets in the state of Utah on November 4,” Fanatics said to LSR.

As mentioned, Utah filed criminal charges against Kalshi last week, and the Commodity Futures Trading Commission filed a lawsuit against the state's gambling authority. It should be noted that Utah has bans on all types of gambling, including the lottery.

DraftKings Predictions Limits Utah Trading to Financial Markets

As for DraftKings Predictions, it’s now a financial-only prediction market.

“Effective immediately, sports, novelty, political, and certain other event contracts are no longer available on DraftKings Predictions for customers physically located in Utah,” the company said to LSR.

Traders can still trade financial event contracts, such as those related to crypto, commodities, and stocks.

What’s intriguing is that DraftKings, FanDuel, and Fanatics are also sports betting operators. This is because Kalshi and Polymarket haven’t stopped offering sports contracts, and they aren’t in the sports betting industry.

That said, Kalshi and Polymarket have stopped offering sports contracts in states like Michigan and Nevada after court rulings went against them.

Utah Files Criminal Charges Against Kalshi and Its Co-Founders

Last Wednesday, Utah Attorney General Derek Brown filed 14 charges against not only Kalshi but also the company's co-founders, Tarek Mansour and Luana Lopes Lara.

“Gambling is illegal in Utah, whether you place the bet, run the game, or promote it,” Brown said in a statement. “Calling it a ‘prediction market’ doesn’t change what it is, and being federally registered doesn’t put a company above the law.”

The criminal charges came after a lawsuit on October 20 to block Kalshi event contracts in Utah.

From here, legal battles with prediction markets will continue. New Jersey has petitioned the Supreme Court for a ruling that could send shockwaves through the industry if it accepts the case.