Utah House Backs Bill to Classify Prop Bets as Illegal Gambling

Utah House Backs Bill to Classify Prop Bets as Illegal Gambling
Utah lawmakers have passed House Bill 243, a measure that aims to clarify that proposition bets are included in the state’s broad ban on gambling. The bill passed the House 63-9 and now heads to the Senate.

Utah already has one of the most restrictive anti-gambling regimes in the US, based on constitutional provisions that prohibit the Legislature from authorizing games of chance, lotteries, or gift enterprises.

The backers of HB 243 contend that with newer forms of betting, there are legal ambiguities that ought to be clarified before they are contested in court. These arguments apply particularly to those types of wagers that don’t feel like sports betting but rather are a kind of ongoing, small-scale prediction.

During debate on HB 243 in the House of Representatives, backers of the measure discussed it in terms of public health concerns, especially with regard to younger people.

What Counts as a Proposition Bet Under the Debate

Proposition bets, also referred to as prop bets, are wagers on certain occurrences within a game, which are not related to the ultimate outcome of the game. An example of such a bet is “who will be the first to score?”

HB 243, which was sponsored by Joseph Elison, seeks to make it clear that such types of propositions are included in the definition of gambling in Utah. The proponents of the law also cited the increase in the number of “event-style” wagers, which are not associated with sports.

Even though the law is being discussed in the context of prop betting, the overall message being conveyed by the debate in the House is Utah’s desire to create a clearer line on products where news, culture, or in-game content is used as a market.

A Key Point of Pushback: Fantasy-Style Contests

Not everyone in the House is convinced that the practical impact of the bill is fully settled. For example, there was concern that expanding the definition could create problems with player vs. player fantasy-style games that are described as skill-based. Rep. Matt MacPherson asked that question, to which Elison replied that it was not their intent to address that with the bill (only proposition betting was).

The conversation could signal what is to come in this debate. In a state where gambling is largely prohibited, there is a concern about where “betting” ends and other competitive formats begin.

What Happens Next in the Senate

The bill now moves to the Utah Senate, where it is up to senators to decide whether to let it proceed or kill it in committee. If approved, it then goes to the governor to be signed or vetoed.

While the action may be technical in nature, the discussion in the Senate could also raise the next potential issue: how far Utah wants to go in attempting to draw a line between proposition wagering and skill-based contest formats.

What This Means for Operators and Compliance

As seen from such developments, “no gambling” states continue to update their laws to reflect new products, even if legalization isn’t on the table. The practical risk is unintentional exposure via marketing, referral traffic, or product features that look like proposition or event-based markets.

The legislative signal here is pretty straightforward: Utah wants fewer arguments about what constitutes a “prop” when enforcement or litigation begins.

Have you enjoyed the article?

Link Copied