Utah
Utah’s anti-gambling tradition meets Kalshi and Polymarket in a new legal fight
SALT LAKE CITY (AP) — For more than a century, Utah has kept gambling almost entirely out of the state. There are no casinos, no lotteries and no racetracks that allow bets, a prohibition rooted in the conservative ideals of The Church of Jesus Christ of Latter-day Saints, which views gambling as a vice that leads to selfishness and addiction.
But now, the state is fighting a new, more challenging battle to keep gambling outside its borders. It’s on the verge of enacting a law intended to undercut prediction markets like Kalshi and Polymarket, which allow anyone with a smartphone to wager on anything from whether it will rain in Los Angeles to whether the United States will go to war.
While regulators and other states are still debating whether those markets constitute finance or gambling, Utah has already made up its mind.
“We are putting a casino in the pocket of every single American, and they are targeting especially young people,” said Gov. Spencer Cox. “It is really awful what they are doing, and we are going to make sure this doesn’t happen in our state.”
Cox said he will sign the legislation, putting conservative Utah at odds with the federal government. Kalshi has already sued the state, and the company is backed by the Commodity Futures Trading Commission, the federal agency responsible for regulating financial markets.
The conflict puts Utah, a place that’s not known for picking fights, on the frontlines of a cultural, political and economic battle sweeping the country. On one side is a state deeply rooted in what is widely known as the Mormon church, where both politicians and faith leaders have treated the issue as a moral crusade. On the other is a growing industry — Kalshi and Polymarket are estimated to be worth $20 billion each after their last fundraising rounds — with connections in Washington that may offer some regulatory protection.
President Donald Trump’s eldest son is an adviser for both Kalshi and Polymarket and an investor in the latter. Trump’s social media platform Truth Social is also launching its own cryptocurrency-based prediction market called Truth Predict.
Whoever wins this round could shape how other states handle the issue in the future.
“What’s at stake here is whether states will be able to regulate gambling or if gambling is going to be subsumed into finance and ultimately regulated by Congress,” said Todd Phillips, a professor at Georgia State University who has written extensively about prediction market regulation.
Utah takes aim at prop betting
Polymarket and Kalshi allow participants to buy and sell contracts tied to the probable outcome of an event. Contracts are typically priced between one cent and 99 cents, which roughly translates to the percentage of customers who believe that event will happen.
The companies argue they offer products that allow customers to manage risk, like how farmers can buy corn futures to lock in the price of their crops ahead of time. And derivative markets like the Chicago Board of Trade and Chicago Mercantile Exchange have long offered what are known as binary options to investors, which bet on whether an event will or will not happen.
But unlike those derivative markets, the bulk of Kalshi’s trading volume and roughly half of Polymarket’s are now tied to sports. Kalshi said it saw more than $1 billion in volume traded on the Super Bowl alone.
Utah is seeking to limit prediction markets from doing business in the state by taking aim at proposition betting in sports, which can be a significant source of their revenue.
The bill that Cox plans to sign would expand the state’s gambling ban to include wagers on certain events happening in a game rather than the game’s outcome. An example of these “prop bets” would be how well a particular player performs, or a team hitting a specific threshold like rebounds or other metrics.
The legislation also aims to stop sportsbooks companies like FanDuel and DraftKings that have set up their own prediction markets, which analysts say could allow the companies to get around state gambling prohibitions.
Because of the vocal opposition of Utah officials, Kalshi preemptively sued the state in late February, asking a federal judge to stop Utah from enforcing its gambling restrictions on the platform. The judge has yet to rule on Kalshi’s request. Other judges in Nevada and Massachusetts have issued early rulings in favor of states looking to ban Kalshi and Polymarket from offering sports betting in their states, while judges in New Jersey in Tennessee have ruled in favor of Kalshi.
Kalshi argues its product is different from sportsbooks companies or casinos because customers are betting against each other instead of against the “house,” spokesperson Elisabeth Diana said.
The Commodity Futures Trading Commission under Trump has agreed with Kalshi and has asserted that it has exclusive regulatory oversight of prediction markets. The agency argues states cannot ban the products from operating in their jurisdiction just because they are morally opposed to them.
“To those who seek to challenge our authority in this space, let me be clear, we will see you in court,” chairman Michael Selig said recently in a video posted to social media.
A moral crusade with religious roots
It’s the first major issue in which Cox has clashed with Trump in the year and a half since the Republican governor worked his way into Trump’s good graces after not voting for him in 2016 and 2020.
Patrick Mason, the chair of Mormon history and culture at Utah State University, said he is not surprised to see Cox and other Utah Republicans take a stand against prediction markets, even if it means going against their own party’s leadership in Washington. In the state, where about half of the 3.5 million residents are Latter-day Saints, even a simple game of church bingo is a rare sight.
“Maybe they play for M&Ms, but never money,” he said.
All the state’s major politicians, including the governor, lieutenant governor and its entire congressional delegation, are members of the church headquartered in Salt Lake City. When they view an issue as moral rather than political, the faith’s teachings often take precedence over appeasing the party, Mason explained.
Church doctrine prohibits gambling in any form, saying it is motivated by “a desire to get something for nothing” and is destructive to individuals and families.
“The idea that it goes against a sense of work ethic, a kind of fair exchange, has always been at the heart of the way a lot of people think about themselves in terms of Utah identity, and certainly Latter-day Saint identity and ethics,” Mason said.
Because of Utah’s religious roots, the state has prohibited gambling since it was admitted to the Union in 1895. Along with Hawaii, it has the strictest gambling prohibitions in the country. Utah doesn’t even allow broad multi-state lotteries like Powerball or Mega Millions.
Utah leads on both state and federal fronts
Phillips, the professor focused on industry regulation, said if Congress does not step in to clarify whether these new prediction markets are legal, the issue will be left to the courts.
“The line between gambling and finance is very, very fine,” Phillips said. “There’s a reason why Congress has, over and over again, stepped in to define and regulate financial markets when the products skew too close to gambling.”
There is already some movement on Capitol Hill, led in part by another Utah Republican.
Republican Rep. Blake Moore of Utah and Democratic Rep. Salud Carbajal of California introduced bipartisan legislation this week to more aggressively regulate prediction markets. The bill would prohibit the platforms from allowing bets on war, assassinations, terrorist attacks or election outcomes, and allow states to ban sports-related betting.
“We, as a society, should not be taking bets on whether we are going to invade Cuba,” Moore said.
Democratic senators have also said they will introduce legislation to ban wagers on violence.
“It’s insane this is legal,” Sen. Chris Murphy of Connecticut said on social media.
In court filings, Kalshi has tried to argue that its sports prediction market has economic utility and usefulness. It uses an example of an insurance company that underwrites the careers of college athletes using prediction markets to hedge the risk. Kalshi also argues that hotels, travel agencies and stadium management companies may be able to use prediction markets to hedge their risk against underperforming sports.
Moore said he is not swayed by Kalshi and Polymarket’s economic arguments.
“Utah’s economic outlook has been strong for many years,” he said. “I see no need why we need to embrace these as an economic tool.”
It’s time for another check-in for the latest mock drafts around the league. We’re seeing a lot of smoke screens out there, but with that smoke, is there some fire? Last time we did a roundup, it was chalk across the board with AJ Dybantsa to Washington, Darryn Peterson to Utah, Cam Boozer to Memphis, and Caleb Wilson to Chicago. Will it be the same with this latest version? After a few weeks, there were some interesting changes.
It’s a pretty huge change to have Cam Boozer go #1 in Ricky O’Donnell’s latest mock drat but I respect the willingness to go with what you feel. Personally, I feel like if I’m the Wizards or the Jazz, I would want a playmaking wing or guard with that top pick, which is what you have in Darryn Peterson and AJ Dybantsa. Boozer does project to be a point-forward type in the NBA with his impressive skill set, but I’m not sure he’s the Jokic-level initiator that some are projecting.
It’s also the first change seeing Darryn Peterson go #1 in Salerno’s mock. Darryn Peterson was considered by many to be the #1 pick going into this season, but we all know about the struggles to stay healthy and the cramping. If the medicals look good, it wouldn’t be a surprise to see him go #1 given his elite talent.
Over at FanDuel, the odds have not switched. Currently, they have AJ Dybantsa with the best odds to go #1, followed by Darryn Peterson and Cam Boozer.
Over the weekend I risked life and limb in the name of fun because that is the Utah summer way.
Or at least that’s the Utah summer way according to the very fun and very adventurous friends who continue inviting me to southern Utah for hikes where the red rock landscapes are breathtaking and the terrain is slick sandstone and one wrong move means instant death.
Honestly, I’m surprised they invited me again this year after I was VERY dramatic about completing The Subway last June. I was assured that this year’s hike in Coyote Gulch was much less canyoneering and much more traditional hiking with “just one steep incline at the end.”
Coyote Gulch is in the heart of Escalante’s canyon country, in south-central Utah, which, for my money, is the most beautiful part of our great state. There’s something about driving a hilly highway through a lush desert landscape while cattle graze on either side of the road that feels completely whimsical. Like it’s a location that should only exist in cinema.
For dinner we stopped at Hell’s Backbone Grill, one of Utah’s most renowned culinary destinations. The restaurant has been selected as a James Beard Award semifinalist and finalist, and deemed the best restaurant in southern Utah by a number of publications. For good reason. The food is locally sourced and fresh and the setting, next to their farm, cannot be beat.
If I’m being completely honest I was hoping that after dinner we’d all decide that dinner on the patio had been worth the three hour drive and provided the outdoorsyness for which the group seemed to year, and that we should spend the next day lounging about, perhaps enjoying a spa, taking in the scenery from a temperature-controlled room with cucumber water on tap.
But that is not what happened. Instead we went to bed and woke up at FIVE O’CLOCK. IN THE MORNING. We left our accommodations at FIVE THIRTY IN THE MORNING and began the drive to the Crack-in-the-wall trailhead, only a portion of which was paved and the rest was sand.
The hike itself, or at least the way we did it, was 12ish miles through an initial slot canyon, in the gulch along the tributary, around a number of waterfalls, under two arches and a natural bridge, and up and over petrified dunes.
We started actually hiking at 7 a.m., and though sandier than most terrain I’ve traversed, there wasn’t anything especially difficult about the first couple of miles. Then we reached the titular crack in the wall, and I learned we were meant to drop down into it. Which I had no idea how to do, but successfully imitated the people who went ahead of me.
Then, once we arrived at the gulch, we spent the next eight or so miles trudging in and out of water which was honestly not as terrible as it sounds. Or maybe it was terrible but I just didn’t notice because the scenery was so lovely and the wildlife was so fun to observe. Birds and toads and lizards punctuated our path as we enjoyed the shade of the tall canyon walls.
Our ultimate destination was the Jacob Hamblin Arch, which simply must be seen to be believed and numbers among the most spectacular natural wonders I’ve been fortunate enough to witness. It was well worth the 10-mile hike.
But then we had to get out of the gulch. And it was then that I learned I don’t actually understand what 45% means in practice. I thought I knew what a 45% incline looked like, but I swear when I saw the alleged 45%, it looked more like 150%.
I watched some of the seasoned climbers in our group scamper up the cliff side like they were possessed mountain goats, and then I was handed the rope and instructed to make my way up. Which I did. With remarkable speed. Because I was terrified.
It turns out that the cliche “Don’t look down” exists for a reason. About halfway up the rock I looked behind to see if other hikers were approaching, and when I did I saw just how far I would fall if the rope slipped. Survival seemed impossible. So I skedaddled, with the strength and speed of a Bornean Orangutan up the rope until I hit high, flat ground. Because I guess fear is what really motivates me to accomplish physical feats. During my next race I might pay someone to chase me with a knife so I can finally get that PR I’ve been seeking
The next two miles were a monotonous up and down over solidified sand and just when I said I was ready to lay down and die, we turned a corner and saw the parking lot. I do believe there is no sight more beautiful, not even the Jacob Hamblin Arch, than the parking lot at the end of the hike. When (if) I get to heaven, I bet it will feel the same as seeing your Subaru parked in the shade at a trailhead, knowing an icy Diet Coke waits within.
As soon as we reached our vehicles and I was able to remove my muddy socks and put on sandals I had already forgotten the trials and tribulations of half an hour ago. I was ready to declare it the best day ever. Just like I said about last year’s adventure.
Can’t wait for next year’s hike.
Utah
Rep. Celeste Maloy secures initial $10M in Utah’s bid for $1 billion in Great Salt Lake funding
SALT LAKE CITY — Utah Rep. Celeste Maloy secured $10 million to create a new Great Salt Lake Watershed Recovery Program in a spending bill which received congressional committee approval Wednesday.
This is the first step, Maloy says, toward obtaining the $1 billion requested by President Donald Trump in April after he discussed the Great Salt Lake at length with Utah Gov. Spencer Cox in February.
“I don’t think we’re going to get a billion dollars in one year. We’re going to get a billion dollars over a series of years,” Maloy told the Deseret News after the 3rd District Republican primary debate Monday.
As the only Utahn on the House Appropriations Committee — and as vice chair of the Subcommittee on Interior and Environment — Maloy is in a unique position to make Trump’s request a reality.
But $1 billion is a big ask.
In May, Maloy told the Deseret News editorial board she is working to get as much money as she can for the Great Salt Lake by focusing her fellow lawmakers on long-term water sustainability across the West.
“I’m doing what I can right now to help my colleagues from other states understand why this is so important to Utah, and even to the president of the United States that he would put that big of an emphasis in his budget,” she said.
Federal dollars should go to interventions with regional, or national impact, Maloy said after Monday’s debate. This includes mitigating toxic dust blowing off of the lake bed and removing invasive plant species.
What would the new program do?
The Interior, Environment, and Related Agencies spending bill was approved by a 35-27 vote on Wednesday. It directs $10 million to “support the long-term sustainability of the Great Salt Lake watershed.”
It instructs the Department of Interior to submit a report within 180 days outlining plans for the lake, specific accomplishments for a successful program, the federal investment needed to do it, and a timeline.
A separate report would detail the watershed activities as they are started and associated costs. Projects could include vegetation management, meadow restoration, plant removal and drainage improvements.
The bill would create a new position within the Department of Interior to oversee disbursement of funds related to near-term conservation and restoration efforts, primarily increasing water flows into the Great Salt Lake.
Maloy previously said she is working on specific language instructing agencies how they will be expected to use the funds. And the bill will include additional planning and coordination requirements to guide future decisions.
Partnerships between the state and the White House will be important to getting the Great Salt Lake the resources it needs, Gov. Cox told the Deseret News in a statement. The governor praised Maloy, while crediting the president for “this initial investment.”
“President Trump’s commitment to the Great Salt Lake helped elevate this issue nationally, and we’re encouraged to see funding included in this year’s appropriations bill,” Cox said. “Protecting the Great Salt Lake will require sustained effort over many years.”
Will Congress get it passed?
While the appropriations process is just beginning, Utah’s delegation has its work cut out for it to get Great Salt Lake money across the finish line. The House must pass spending bills before they receive Senate amendments.
Every dollar spent on a new program has to be taken from somewhere else, according to Maloy, and there is only a brief time in which the president’s recommendations can be incorporated into the overall budget.
But Trump’s endorsement carries its own momentum.
“We’re having collaboration, the likes of which I have not seen before on water issues in the West, and that gives me hope,” Maloy told the Deseret News editorial board.
“We’ve never had a president of the United States, to my knowledge, say we want to make sure that we’re taking care of the Great Salt Lake — and we have that right now.”
Any solution requires coordination between federal, state and local policymakers, according to Maloy. Most water law is state law, but Utah will need help from Washington, D.C., to craft a long-term plan, she said.
In a statement to the Deseret News, Utah House Speaker Mike Schultz, R-Hooper, said “Restoring and protecting the Great Salt Lake is a long-term effort that will require partnership between state, federal, and local leaders.”
“We look forward to continuing to work with Congresswoman Maloy, Utah’s congressional delegation and the administration to secure resources and advance meaningful solutions for the lake now and in the years ahead.”
High-profile committees on board
Protecting the Great Salt Lake has long been the sole responsibility of the state, Senate President Stuart Adams, R-Layton, told the Deseret News. But that looks like it is about to change with greater national recognition.
Adams noted the importance of Trump’s decision to highlight the lake in his budget recommendations after speaking with Cox, but pointed to Maloy’s “leadership” for translating it into the appropriations process.
“For a natural resource that has historically received little federal attention and remains one of the only major natural water resources in the country without dedicated federal funding, today’s investment represents significant progress,” Adams said.
Candidates for the 1st Congressional District, Rep. Blake Moore and state lawmaker Karianne Lisonbee, also participated in a debate on Monday, where they were asked how they would help deliver federal funds to the lake.
Moore, a member of Republican caucus leadership who sits on the Ways and Means Committee, said he had a private meeting with Trump’s director of Management and Budget, Russell Vought, about this exact issue.
Moore committed to work closely with Vought to ensure the subcommittee spending bill clearly explains how the money will be used, ranging from eliminating invasive Phragmites and increasing conservation infrastructure.
Lisonbee expressed concern about the price tag, questioning how $1 billion in federal funding would hurt taxpayers and whether it would be the most effective approach, since most remedies exist at the state level.
‘The only one’
Ultimately, Maloy hopes that the federal funding that is allocated for the Great Salt Lake this year is used to support the state in achieving its goals, and providing helpful resources, instead of taking the project out of local hands.
As Maloy defends her record in a race against former lawmaker Phil Lyman, she has framed her exclusive committee roles in the U.S. House as making her Utah’s best bet at getting help for the Great Salt Lake.
“This is an issue that matters the most in Utah. I’m the only Utahn on appropriations,” Maloy said in May. “So it’s going to take a lot of work on my part, but I’m really the only one in a position to do it right now.”
The Key Takeaways for this article were generated with the assistance of large language models and reviewed by our editorial team. The article, itself, is solely human-written.
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