Gov. Spencer Cox of Utah has publicly stated that prediction markets allow every young person to have a “portable casino” in their pocket, announcing his opposition to the sector.
The governor comes from a conservative state where gambling is outlawed as a whole, and where attempts to offer any form of it are frowned upon.
Prediction markets have managed to occupy a space couched in federal regulatory language, which allows them some wiggle room, but Utah is now poised to change that, with Gov. Cox’s blessing, nonetheless.
Utah Poised to Toughen Stance on Prediction Markets
House Bill 243, which intends to include and define proposition betting in the current gambling laws, has already been passed by both the House and the Senate.
Gov. Cox is now likely to sign the measure into law, although it can yet face legal opposition from prediction market platforms, with some already filing lawsuits against the decision.
“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,” added Todd Phillips, a professor at Georgia State University, cited by the Associated Press, and who has weighed in on the debate.
He has a point. The conflict essentially boils down to whether prediction markets can argue their case successfully, and that is that their products are a form of investment and finance, and should not, therefore, be subjected to local gambling laws.
Prediction Markets Maintain That They Are Not Gambling Markets
The Utah proposal is changing this language entirely, inscribing it in law and arguing the toss. This creates conflict that is likely to be resolved by the Supreme Court of the United States.
The Commodity Futures Trading Commission has been put in a difficult position as well, with the regulator attempting to regulate the sector but facing opposition that it is not equipped to oversee “gambling”.Kalshi and Polymarket have repeatedly insisted that their product is rooted in trading and finance and hardly gambling, but this argument is falling short for now – at least in Utah.
