Several prediction markets have “ceased operations” in Utah after the state filed 14 criminal charges against prediction market operator Kalshi and its co-founders, according to Shreyas Laddha of the SALT LAKE TRIBUNE. The state filed charges against Kalshi on Oct. 28 and DraftKings “sent an email notice to consumers announcing it was ceasing operations in the state” later that day. On Oct. 30, FanDuel Predicts “followed suit, shutting down operations in Utah.” Meanwhile, Fanatics “stopped all trading on its Fanatics Markets platform” in the state on Wednesday. This comes just weeks after it was reported that “DraftKings and other prediction markets continued to operate in the state, despite Utah having completely banned all forms of gambling.” Utah AG Derek Brown said in a statement, “Utah law is clear: gambling is illegal in our state. Some of the largest online gambling apps are now pulling out of Utah. I appreciate these companies being responsive to our efforts” (SALT LAKE TRIBUNE, 11/8).
DOUBLING DOWN: In Boston, Jon Chesto reported DraftKings is “doubling down on its expansion into the prediction markets,” but investors “don’t seem to consider that move a safe bet.” Shares in DraftKings “plunged” 21% on Friday to $18.51, after it disclosed a “big ramp-up in spending on attracting prediction-market customers.” The previous afternoon, as part of its third-quarter earnings, DraftKings disclosed that it is “spending as much as” $700M on prediction markets this year, “mostly on marketing, more than twice the level previously stated.” One reason “investors are skeptical” is that the future of prediction markets “could hinge on a Supreme Court decision, possibly as soon as next year.” DraftKings CEO Jason Robins during an earnings call on Friday said that even if the Supreme Court “shuts the door” on using prediction markets for placing wagers on sports, DraftKings “will make back its investments over time, in part by cross-selling to prediction-market customers” (BOSTON GLOBE, 11/6).