DraftKings, FanDuel and Fanatics Restrict Prediction Market Offerings in Utah

Utah Attorney General Derek Brown filed criminal charges against prediction market operator Kalshi and its co-founders. Following this development, DraftKings, FanDuel and Fanatics, which are linked to sports betting companies, decided to narrow their activities in the state.

On Wednesday, October 28, DraftKings removed sports, politics and novelty contracts from its platform for its customers in Utah. FanDuel applied the same restriction on Friday, ending access to similar markets on its Predicts platform as of 10 a.m. ET. Fanatics Markets took a broader approach, announcing that it would stop all trade purchases in Utah starting November 4.

DraftKings and FanDuel will continue to allow trading in financial and economic indicator contracts. Both companies stated that existing open positions will be settled normally at maturity.

The decisions come amid a legal dispute between Utah and the federal regulator, the Commodity Futures Trading Commission. The state is pursuing criminal proceedings against Kalshi, while the CFTC is questioning Utah's authority to restrict contracts that it views as subject to federal oversight. As state and federal authorities disagree over which jurisdiction governs sports-based event contracts, companies in the sector are reacting differently.