CFTC sues Utah, the 10th state it has taken to court over prediction markets
The United States and the Commodity Futures Trading Commission sued Utah in federal court on October 26, 2026 to stop the state enforcing its gambling laws against federally regulated prediction markets. The suit came six days after Utah’s attorney general sued Kalshi.
What happened
The United States and the Commodity Futures Trading Commission (CFTC) sued Utah on October 26, 2026 in the US District Court for the District of Utah, seeking to stop the state enforcing its gambling laws against prediction markets regulated by the CFTC. The agency’s position is that federal law gives it exclusive authority over contracts traded on federally registered exchanges, so state gambling laws cannot be applied to them. CFTC Chairman Michael S. Selig said the agency “will continue to safeguard its exclusive regulatory authority over these markets.”
The suit followed Utah’s own move six days earlier. On October 20, Utah Attorney General Derek Brown sued Kalshi entities in state court in Salt Lake County, claiming that Kalshi’s sports event contracts break Utah’s gambling laws. Utah bans all gambling and has no state lottery.
The details
The two sides have been in court before. Kalshi sued Utah officials in February 2026 to block enforcement against the exchange. In August, US District Judge Robert Shelby granted summary judgment to Utah, holding that federal law does not override the state’s gambling laws. Kalshi appealed, and on September 8 the Tenth Circuit Court of Appeals refused to block enforcement while the appeal runs.
Utah is the 10th state the CFTC has taken to court over prediction markets. Its complaint lists the nine earlier suits, against Arizona, Connecticut, Illinois, Kentucky, Minnesota, New Mexico, New York, Rhode Island and Wisconsin.
What it means
A lawsuit is not a ruling, and nothing changes in Utah until a court decides. Our US sportsbooks page lists only books licensed by state regulators. For how prediction markets treat younger customers, see Kalshi’s new limits for users under 21; for how their sports combos are priced, see how prediction-market parlays work.
Key facts
| Filed | October 26, 2026, US District Court for the District of Utah |
|---|---|
| Plaintiffs | United States and the Commodity Futures Trading Commission (Chairman Michael S. Selig) |
| Defendant | State of Utah |
| Trigger | Utah Attorney General Derek Brown’s October 20 lawsuit against Kalshi in Salt Lake County |
| Earlier ruling | Judge Robert Shelby (August 2026): federal law does not override Utah’s gambling laws |
| States sued by the CFTC | 10, including Utah |
| Market | United States · regulator: state gaming regulators |
| Published | October 28, 2026 |
Questions and answers
Why is the CFTC suing Utah?
To stop Utah enforcing its gambling laws against federally regulated prediction markets such as Kalshi. The CFTC says federal law gives it exclusive authority over contracts traded on federally registered exchanges.
Is Kalshi legal in Utah?
It is contested. In Kalshi’s own case, Judge Robert Shelby ruled in August 2026 that federal law does not override Utah’s gambling laws, and the Tenth Circuit refused to block enforcement during the appeal. Utah’s attorney general sued Kalshi on October 20, and the CFTC sued Utah on October 26.
Which states has the CFTC sued over prediction markets?
Ten as of October 26, 2026: Arizona, Connecticut, Illinois, Kentucky, Minnesota, New Mexico, New York, Rhode Island, Wisconsin and Utah.
Related stories
Sources
This story is our own summary and analysis of the reporting above; figures are as reported on the date shown. Spotted an error? Email contact@sportsbooks.ro.
The Sportsbooks editorial team reviews licensed sportsbooks from public, sourced evidence: regulator registers and enforcement notices, App Store ratings and each operator’s published terms. Every review is re-checked at least every 90 days.
Editorial policy · How we rate