SALT LAKE CITY (AP) — Utah can enforce its strict anti-gambling laws on prediction markets such as Kalshi and Polymarket, a federal judge ruled in a win for states seeking to rein in the popular betting platforms.

Utah has been on the front lines of a battle between states and the federal government over who regulates the markets and whether they should be considered finance or gambling. The legal landscape is fragmented, with state and federal courts blocking restrictions in several states and allowing them in others.

Kalshi sued Utah in February, asking a federal judge to prevent the state from enforcing its gambling restrictions on the platform. The lawsuit came as Utah was on the verge of enacting legislation intended to undercut prediction markets from doing business in the state.

State law now bans proposition betting in sports — wagers on certain events happening in a game, rather than the game’s outcome — which is a significant source of revenue for the leading prediction markets.

U.S. District Judge Robert Shelby rejected Kalshi’s request to block the Utah restrictions Tuesday, saying the federal law that Kalshi cited in its argument does not prevent the state from enforcing its laws.

For now, Utah residents can still place bets on the platforms. The state’s attorney general, Derek Brown, said he will enforce state laws on Kalshi, but he was still exploring options.

“Gambling is gambling, no matter what any company calls it,” Brown said.

Kalshi said in a statement that it disagrees with the ruling and plans to appeal.

The company maintains that prediction markets fall exclusively under federal jurisdiction and are not governed by a patchwork of state gambling laws. The Commodity Futures Trading Commission, the federal agency responsible for regulating financial markets, agrees and has defended prediction markets in court.

Courts in Maryland, Nevada, Ohio, New York and Wisconsin have ruled against Kalshi in similar lawsuits, while judges in New Jersey, Tennessee, Arizona and Minnesota have sided with the company. Other states have been allowed to restrict certain aspects of Kalshi’s operations without banning them entirely.

The Trump Administration has been supportive of prediction markets, which allow anyone with a smartphone to wager on just about anything. The president’s eldest son is an adviser for both Kalshi and Polymarket, and an investor in the latter through his venture capital firm. Trump’s social media platform, Truth Social, is also launching its own cryptocurrency-based prediction market called Truth Predict.