A Senate committee in Utah has given its full endorsement to legislation on Thursday aimed at prohibiting proposition betting, which involves wagering on particular in-game events, such as how an athlete performs, instead of simply predicting the overall outcome of a game.

According to lawmakers, this measure aims to clarify what they see as an evolving legal ambiguity in sports betting, as reported by the Utah News Dispatch.

Sponsored by Rep. Joseph Elison, a Republican from Toquerville, the bill, HB243, defines proposition betting as a “gambling bet on a single action, statistic, occurrence, or non-occurrence.” After getting a nod from the Utah House, the legislation now moves to the Utah Senate for further evaluation.

Elison emphasized that the initiative is designed to resolve confusion surrounding emerging betting platforms and prediction-style markets which function under various regulatory frameworks.

“This situation is a significant gray area, with numerous lawsuits across the country addressing the very definitions,” Elison stated to the Dispatch. “These platforms operate under what’s called prediction markets, which are overseen by the Federal Commodities Exchange, enabling them to function.”

The constitution of Utah already outlaws gambling. This bill seeks to broaden the state’s definition of gambling to specifically encompass proposition betting. Nevertheless, there are lingering concerns regarding how the new law might influence prediction markets if it’s ratified.

A spokesperson for the Utah House Republicans indicated that the state attorney general’s office would guide the navigation of this new landscape if the bill is enacted.

Utah Attorney General Derek Brown explained to the committee that advancements in technology have transformed the gambling landscape. “Previously, gambling was rather clear-cut,” he remarked, highlighting the transition to digital platforms. “Proposition betting is increasingly blurring the distinctions between traditional gambling and gambling conducted via apps.”

Brown further articulated how certain platforms present wagers as trades on anticipated outcomes rather than traditional bets, establishing a legal distinction that closely resembles gambling. “Many applications are framing their activities as trades on future outcomes instead of bets on sports,” he outlined.

This proposal, if ratified, would explicitly prohibit betting applications that facilitate prop wagering, including FanDuel, DraftKings, and BetMGM, from operating in Utah. Meanwhile, predominantly prediction market platforms like Kalshi and Polymarket might not be directly impacted by the legislation.

Scrutiny of prediction-style markets at the national level has intensified in recent months. Utah Governor Spencer Cox recently criticized Commodity Futures Trading Commission Chair Mike Selig, warning that online betting is “ruining lives.”

“Our focus isn’t specifically on platforms; rather, we are addressing the principle of prohibiting proposition betting,” Elison confirmed. “This is a multi-hundred-billion-dollar industry in the United States, and our intent here is to respond to a particular issue prevalent in Utah.”