Arizona has filed criminal charges against Kalshi, an online app and prediction market company. Gov. Spencer Cox applauded the move and said he wants Utah to follow suit.
“I've been pretty, pretty blunt about how I feel about what these companies are doing, these gambling companies that are pretending to be something else,” he told reporters during his March governor’s news conference. “It's, you know, walks like a duck and quacks like a duck. It's a duck. And I think everybody agrees with that, except the people who are making billions off of trying to destroy our kids.”
He added that Utah Attorney General Derek Brown is looking into it.
The Arizona suit accuses Kalshi of operating an illegal gambling business in the state and violating state laws that prohibit betting on state elections. Cox has his eye on the same violations in Utah.
“You can't bet on local elections in Arizona,” he noted. “Can't do that here in Utah either.”
A search for Utah elections on prediction market sites Kalshi and Polymarket turns up results. They range from questions about who will win in the redrawn 1st Congressional District to whether Republicans lose a House seat in a state Trump won to who will win the Republican nomination in the 3rd District, Celeste Maloy or Phil Lyman?
Gambling has been kept out of the state for more than a century. The statewide prohibition is enshrined in the Utah Constitution and has been shaped by the beliefs of The Church of Jesus Christ of Latter-day Saints. So far in the state’s history, it's been relatively easy to stop gambling: don't build casinos, don’t allow lotteries and don’t let bookmakers set up shop. The challenge the state faces now is how to legislate a gaming ecosystem that fits in an app in everyone’s pocket.
“I feel confident that once the courts have a chance to look at this, they're going to agree with us that this is gambling pure and simple, and they need to follow the same laws that are in place for DraftKings and other organizations,” the governor said.
The Legislature passed a bill this year that clarifies that proposition bets, like those offered on prediction market sites, are gambling. Kalshi preemptively sued Utah in February, claiming state laws can’t infringe on their operation because they deal in federally regulated derivatives, not gambling.
The Commodity Futures Trading Commission supports Kalshi’s federal-only regulation stance. Donald Trump Jr. serves as a strategic advisor to the platform and President Donald Trump wants to launch a cryptocurrency‑based market app through Truth Social called Truth Predict.
Cox wasn’t concerned about repercussions from the administration if the state moved against prediction market apps.
“We haven't heard anything from the administration,” he said, “you know, I came out very strongly. It's been several weeks ago now, and there's been no, no pushback at all on that piece.”
It is yet another policy where Utah wants to plant a flag for states’ rights when it comes to technological advancement. Attempts earlier this year by Republican Rep. Doug Fiefia to pass AI regulation met resistance from the White House. Cox made it clear that he is supportive of AI development in Utah, provided it’s done right.
Fiefia’s two attempts toward AI child safety regulations died in this year's legislative session. Cox said he would like to see them refined and reintroduced.
“We want to work closely with Rep. Fiefia and other legislators. The White House has been very clear that states can regulate AI when it comes to protecting our kids, and we want to take advantage of that,” he said.
Responding to a question about the U.S. Immigration and Customs Enforcement’s purchase of a warehouse west of Salt Lake City, Cox told reporters that immigration is one area where the federal government has absolute authority.
“The Constitution is very clear on that,” he said. “So it, I mean, I think it matters what I think, and I think it matters what local government thinks, but the federal government can do this, whether Salt Lake City likes it or not.”
The governor supports having an ICE detention facility in Utah, since the closest one is located in Las Vegas. He pointed out they’ve been working with multiple administrations on it and that it would solve transportation and cost problems in Utah and neighboring states like Idaho and Montana.
He said he didn't find out about the purchase until after it was made and noted that the purchase happened without the local government’s knowledge.
“No members of our congressional delegation were given any notice. No locals were given any notice, that’s, I think, a little frustrating for everyone,” Cox said.
As a state, Utah wants to work closely with the federal government on the issue. The governor said things were essentially on hold while the Senate debates the confirmation of Sen. Markwayne Mullin to lead the Department of Homeland Security.
The governor said he did not believe that an ICE facility in Utah would ramp up enforcement or create situations similar to what was seen in Minnesota. A lot of that will depend on the new Homeland Security leader.
“My thoughts are that we need an ICE facility,” he said. “We need to get the right kind of ICE facility.”
