DraftKings, FanDuel, Fanatics pull sports markets from Utah

DraftKings, FanDuel, Fanatics and PrizePicks have each confirmed changes to their prediction market offerings in Utah, days after the state brought criminal charges against rival operator Kalshi, according to SBC Americas.

Utah filed 14 charges against Kalshi this week, 13 of them felonies, along with a misdemeanour count, targeting the company and its co-founders Tarek Mansour and Luana Lopes. Utah Attorney General Derek Brown argues Kalshi has been offering sports betting and other gambling products in a state whose constitution bars the legislature from authorising any form of lottery, gift enterprise or game of chance.

Brown used a press conference to put other operators on notice. "For other companies that are operating here in Utah, I would ask two things," he said, according to SBC Americas. "Number one, read this complaint, and number two, we're simply asking you to follow the law, follow Utah law. Gambling has been illegal in Utah since statehood."

DraftKings moved first. The company confirmed that as of Thursday afternoon, DraftKings Predictions no longer offers sports, political, novelty and "certain other" event contracts to customers physically located in Utah. In a statement to SBC Americas, DraftKings said financial event contracts tied to stocks, commodities and cryptocurrency remain available, and that open positions in the affected markets will stay open and settle as normal.

FanDuel made a matching move from Friday morning, withdrawing its sports, political and novelty contracts from Utah users of FanDuel Predicts. A spokesperson told SBC Americas that trading on economic benchmarks and key financial indicators would continue, and that any positions customers already held would remain open and settle as expected.

Fanatics Markets still listed Utah as an available region as of Friday, but a spokesperson told SBC Americas the company is stopping trade placement in the state from 4 November, citing recent developments.

PrizePicks has gone further, confirming it has turned off Team Picks and Culture Picks in Utah. Team Picks cover prediction markets on sports games, leagues and season-long outcomes, while Culture Picks span politics, entertainment and pop culture contracts. A company help page updated on Wednesday showed only its daily fantasy-style Player Picks remaining available in the state.

Underdog had not followed suit as of Friday, continuing to list Utah as a region of availability, and did not respond to an SBC Americas inquiry.

The pullback follows an escalating legal confrontation between Utah and the prediction markets industry. Kalshi first sued Utah officials in February, arguing federal commodities law pre-empts the state's constitutional gambling ban. A federal judge rejected that argument in August, and the Tenth Circuit Court of Appeals denied Kalshi's emergency bid for an injunction pending appeal in September.

Brown filed his state court case against Kalshi on 20 October, naming the company's co-founders along with Susquehanna trading firms as additional targets. Two days later, the Commodity Futures Trading Commission and the US Department of Justice sued Utah in an effort to block the state's gambling enforcement against prediction markets, while Crypto.com and its affiliated OG.com platform brought a separate suit against the state on the same day.

Utah's state court petition seeking a preliminary injunction against Kalshi has focused chiefly on sports and politics contracts, but it has also asked a judge to block the company's culture and so-called mention markets, leaving open the possibility that enforcement could widen further.