Prediction Markets
in Utah
Utah maintains strict anti-gambling laws with broad statutory prohibitions that could be interpreted to cover prediction market wagering. While CFTC-regulated platforms like Kalshi operate under federal preemption, the state's aggressive anti-gambling posture creates uncertainty for residents engaging with platforms that are not explicitly CFTC-licensed.
Which platforms are available in Utah?
| Platform | Status in UT | Notes |
|---|---|---|
| Kalshi | Available | CFTC-regulated DCM — broadest topic coverage, no deposit minimum |
| Polymarket | Available | US platform via QCEX (CFTC-licensed, Dec 2025 launch — invite-only waitlist, full access est. Q3–Q4 2026) |
| Manifold | Available | Play-money + optional sweepstakes cashout, 5% fee. Available everywhere except DE, ID, MI, WA. |
| PredictIt | Available | Politics-only markets, $850 max per contract. CFTC no-action relief. |
⚠ Platform availability can change. Always verify directly with the platform before depositing funds. Polymarket's QCEX waitlist is currently 6–12 weeks for most states.
Kalshi
CFTC-regulated DCM — broadest topic coverage, no deposit minimum
Polymarket
US platform via QCEX (CFTC-licensed, Dec 2025 launch — invite-only waitlist, full access est. Q3–Q4 2026)
Manifold
Play-money + optional sweepstakes cashout, 5% fee. Available everywhere except DE, ID, MI, WA.
PredictIt
Politics-only markets, $850 max per contract. CFTC no-action relief.
Regulatory environment in Utah
Utah maintains strict anti-gambling laws with broad statutory prohibitions that could be interpreted to cover prediction market wagering. While CFTC-regulated platforms like Kalshi operate under federal preemption, the state's aggressive anti-gambling posture creates uncertainty for residents engaging with platforms that are not explicitly CFTC-licensed.
- Kalshi (CFTC-regulated) operates under federal preemption — generally accessible in Utah
- Polymarket QCEX is available via waitlist, though state regulatory scrutiny is elevated
- Monitor regulatory developments — enforcement posture in caution states can shift quickly
- Consult a local attorney before deploying significant capital on non-CFTC platforms
How Utah taxes prediction market profits
Utah taxes event contract profits as ordinary income at a flat state rate of 4.55%.
At the federal level, platforms like Kalshi issue annual 1099-MISC forms reporting net profits as ordinary income. You can deduct up to $3,000 in net losses per year against other income, carrying forward the remainder to future years. If you trade sports event contracts, the One Big Beautiful Bill Act (OBBBA, signed July 4 2025) caps sports betting loss deductibility at 90% starting in 2026.
General information only. Consult a qualified tax professional regarding your specific situation.
Calculate your edge
Expected Value Calculator
Convert any contract price to American odds, decimal odds, and implied probability — then check whether a trade has positive expected value before you place it.
● Kelly calculatorKelly Criterion — Optimal Bet Sizing
Enter your edge and bankroll to find the mathematically optimal stake size. Includes half-Kelly (the practical default) and quarter-Kelly recommendations.
Other states
Arizona
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California taxes event contract profits as ordinary income at state rates up to 13.3%, amo…
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Connecticut taxes event contract profits as ordinary income at state rates up to 6.99%.…
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Hawaii taxes event contract profits as ordinary income at state rates up to 11%, among the…