DraftKings Announces It Will Restrict Predictions in Utah

DraftKings won’t risk getting stung in the Beehive State.

The sports betting giant has announced it will limit its DraftKings Predictions offerings in Utah. This will include halting all sports markets, as well as politics and other controversial categories. All players will keep their existing balance and can either withdraw it or use it to play the platform’s financial markets.

“We’re writing to let you know of a change to DraftKings’ offerings in Utah,” an email to Utah DraftKings Predictions customers reads. “Effective immediately, sports, novelty, political, and certain other event contracts are no longer available on DraftKings Predictions for customers physically located in Utah.” 

The decision comes amid Utah’s escalating fight with Kalshi. The operator has appealed to the Tenth Circuit, asking it to allow markets in Utah. While the court has not yet ruled, lawmakers from 37 states have joined to file an amicus brief urging it to uphold Utah’s state rights.

Kalshi has resisted pausing its markets in the state, leading Utah to file criminal charges against co-founders Tarek Mansour and Luana Lopes Lara for illegally promoting online gambling. This significantly raises the stakes for prediction operators facing similar fights across the US.

DraftKings Has a Big Problem

While Kalshi is choosing to press through the opposition in Utah, DraftKings has far more to lose.

Many of the 37 states supporting Utah have legal sports betting markets where DraftKings Sportsbook is operating. As a result, it could lose those states or have its licenses suspended if it chooses to stand alongside Kalshi to defend sports contracts. Given that the operator’s revenue still comes overwhelmingly from DraftKings Sportsbook, that’s a risk it can’t afford to take.

Unfortunately, the move will motivate other states to follow Utah’s lead. As long as the bipartisan coalition remains together, DraftKings may be forced to restrict its sports contracts to a handful of US markets.

Fortunately, FanDuel and Fanatics, DraftKings’ top sportsbook rivals, face the same situation. Both have launched prediction markets and have expanded sports contracts across the US. While they have yet to announce an exit from Utah, DraftKings' decision will put more pressure on them to do so.