The Utah Legislature is taking steps to tighten the state’s gambling regulations with a focus on proposition betting. The Senate Business and Labor Committee unanimously approved HB243, a bill that aims to explicitly include bets on specific outcomes—such as individual player statistics or in-game events—under Utah’s constitutional ban on gambling. Sponsored by Rep. Joseph Elison, R-Toquerville, the legislation now moves to the full Senate after passing the House.
Closing Legal Gaps On Modern Betting
HB243 defines proposition betting as a “gambling bet on an individual action, statistic, occurrence, or non-occurrence.” Elison described the current environment as “a huge gray area and there’s lots of lawsuits all over the country right now … debating this very thing, trying to find out what are the actual definitions. They’re flying under what’s called prediction markets, and prediction markets are regulated by the Federal Commodities Exchange. That’s why they’re able to do it.”
Lawmakers emphasize that the bill is designed to clarify legal ambiguity rather than single out particular companies. If passed, it would prevent Utah residents from using apps that allow wagering on player performance, while leaving federal-regulated prediction markets such as Kalshi and Polymarket in a less certain position. “We’re not necessarily aiming at platforms, we’re aiming at the principle of not allowing proposition betting,” Elison said.
Constitutional Context And Regulatory Concerns
Utah has historically maintained one of the strictest gambling prohibitions in the country. The state’s constitution already bars most forms of gambling, and HB243 extends this framework to explicitly encompass proposition betting. Attorney General Derek Brown stressed that modern digital platforms have blurred the line between traditional betting and what appears to be financial trading: “Proposition betting, generally, is starting to blur that line between traditional gambling and gambling on apps … they’re trying to make it look like it is a trade on the future.”
Brown highlighted the legal nuance around prediction markets, noting that while states control gambling, contracts traded as financial instruments fall under federal oversight. He remarked, “You can’t bet that the Seahawks were going to win (the Superbowl), but you could trade on a potential future outcome in which the Seahawks would win … it is gambling.”
Governor Spencer Cox has also weighed in, criticizing online betting and stating it is “destroying lives.” These comments underscore the administration’s broader scrutiny of digital wagering and the social impact of gambling apps.
National Significance And Enforcement
HB243 is part of a wider national conversation regarding the status of prediction-style markets. Across the US, courts are evaluating whether these contracts constitute gambling or financial instruments. Utah’s legislation may influence other states with restrictive gambling laws by establishing a precedent for regulating app-based wagering products.
Residents would face restrictions on accessing proposition betting apps like FanDuel, DraftKings, and BetMGM if the law is enacted. Meanwhile, prediction markets continue to operate in a legal gray area where state gambling rules intersect with federal commodities regulation. The outcome of HB243 could offer guidance for lawmakers navigating the evolving digital betting landscape.
Source:
“Utah Legislature advances ban on proposition betting”, yahoo.com, February 23, 2026
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