- Rep. Joseph Elison filed House Bill 243 to outlaw prop betting in Utah even though gambling is already banned.
- The bill updates state law to define prop bets as illegal and lets the Attorney General go after platforms breaking the rules.
- The bill reflects nationwide sports betting concerns, though federal prediction markets remain exempt.
SALT LAKE CITY — Lawmakers in Utah are moving ahead with legislation to outlaw prop betting despite the state’s existing gambling ban. Rep. Joseph Elison introduced House Bill 243 to tackle what he views as loopholes in existing regulations that some platforms could be exploiting.
Prop bets, in which bettors wager on particular in-game occurrences or individual statistics rather than who wins or loses, are the focus of the bill. Common prop bets include whether a running back gains over 100 rushing yards or the total number of three-pointers a player scores. Following the 2018 Supreme Court ruling that allowed legal sports betting in states throughout the US, these betting options have experienced rapid expansion.
Closing Regulatory Gaps
Elison’s bill would explicitly classify proposition bets as gambling by amending Section 76-9-1401 of the Utah Criminal Code. According to the representative, some smaller platforms might be permitting betting without those limitations, even as larger NFL betting sites like DraftKings successfully employ geofencing technology to prohibit Utah residents from placing bets.
Reports from local radio stations suggested that certain companies were permitting betting activity within the state. Elison tested a DraftKings account himself and confirmed he couldn’t place any bets from within Utah’s borders.
The Attorney General’s office would have more authority under the proposed bill to serve cease and desist letters to platforms that still offer prop bets. Prediction markets like Kalshi, which are subject to federal supervision by the Commodity Futures Trading Commission, will not be impacted by the measure. These platforms function similarly to betting sites in Utah but are classified as financial exchanges rather than sportsbooks.
The law is a reflection of more general regulatory issues in the sports betting sector. Over thirty state attorneys general have demanded more stringent monitoring, and the NCAA has petitioned federal regulators to stop college sports offerings on prediction markets. Similar regulations on college football sportsbooks are being considered in New Jersey, with a focus on player prop bets that highlight particular student-athletes.
House Bill 243 has been referred to a committee for review.
