Prediction markets · Legal tracker

Are prediction markets legal in your state?

A sourced, state-by-state tracker of prediction-market legality in the US — court rulings, state lawsuits, new laws and which platforms restrict where.

Key takeaways

  • Prediction markets in the US are federally regulated by the CFTC, but many states argue sports contracts are illegal gambling under state law.
  • Federal appeals courts are split: the 3rd Circuit sided with Kalshi (Apr 2026); the 9th and 6th Circuits ruled against it (Aug–Sep 2026). The Supreme Court has been asked to decide.
  • Court rulings and orders currently keep Kalshi's sports contracts out of Massachusetts, Michigan, Nevada, Utah and Washington.
  • Status changes weekly. Every row below shows its source and the date we last checked it.
Last verified October 4, 2026 — this changes weekly

Several major rulings landed between September 25 and October 2, 2026. Before you rely on any row below, open the app you plan to use: platforms apply location checks that reflect court orders faster than any tracker can. This page is not legal advice.

Is it available in your state?

Two-letter code or state name. Facts verified October 4, 2026. Not legal advice.

The short answer

Prediction markets in the US run on exchanges registered with the Commodity Futures Trading Commission (CFTC), the federal regulator for futures and swaps. State actions focus on sports; contracts on economics, weather and finance have drawn far less enforcement, and Washington’s injunction against Kalshi expressly leaves them out. Election contracts became widely available after a 2024 federal court ruling, though Kalshi’s election contracts are now blocked in Nevada and Washington.

The fight is over sports event contracts. Since Kalshi launched sports contracts in January 2025, more than a dozen states have argued they are simply sports bets that need a state gambling license. The platforms — backed by the CFTC under Chairman Michael Selig — argue that federal law gives the CFTC exclusive jurisdiction and preempts state gambling law.

Where the courts stand

Court Case Date Result
3rd Circuit (New Jersey) KalshiEX v. Flaherty Apr 6, 2026 For Kalshi (2–1): sports contracts are likely “swaps” and state law is likely preempted
9th Circuit (Nevada) KalshiEX v. Assad Aug 28, 2026 Against Kalshi (3–0): sports contracts are not swaps; no preemption
6th Circuit (Ohio, Tennessee) KalshiEX v. Schuler / Orgel Sep 25, 2026 Against Kalshi (3–0): contracts not shown to be swaps; no preemption even if they were
4th Circuit (Maryland) KalshiEX v. Martin Argued May 7, 2026 Decision pending
U.S. Supreme Court Flaherty v. KalshiEX (No. 26-299); Robinhood (No. 26-338) and Crypto.com (No. 26-344) petitions Responses due Nov 9, Oct 14 and Oct 15, 2026 Not yet decided whether to hear

When federal appeals courts disagree on the same legal question — a circuit split — the Supreme Court is more likely to take the case. Until it rules, a platform’s legal position can differ from one region of the country to the next.

Our news desk covers each development in more detail:

What the CFTC is doing

The CFTC has taken the platforms’ side. On February 4, 2026 it withdrew a 2024 proposal that would have restricted event contracts. On June 10 it proposed rewriting Rule 40.11, which bars contracts involving “gaming” and other listed activities (comments closed July 27, 2026; no final rule as of our check). It has sued nine states that moved against prediction markets, and on August 11, 2026 it used emergency authority to direct Kalshi to keep operating after New York sued.

State-by-state status

Status labels describe the position for sports contracts unless a row says otherwise:

  • Available — no major state action found; platforms operate normally.
  • Contested — lawsuits, enforcement or new laws are pending, but platforms are generally still live.
  • Restricted — a court order or ruling currently keeps a major platform’s sports contracts out of the state.
  • Pending — legislation introduced but not enacted.
StateStatusWhat we knowVerified
Alabama Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
Alaska Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
Arizona Contested Arizona filed criminal charges against Kalshi in March 2026. On May 5, 2026 a federal judge granted the CFTC a preliminary injunction that blocks state enforcement, including the criminal case. Arizona has appealed to the 9th Circuit. Some platforms (reportedly Novig and Polymarket US) still block Arizona.
Sources: CFTC · Arizona Mirror
October 4, 2026
Arkansas Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
California Available Sports and other markets are offered statewide except on tribal lands, which operators exclude. On Sep 16, 2026 the 9th Circuit sided with California tribes in a dispute under the Indian Gaming Regulatory Act, and the tribal litigation continues.
Source: CBS Sports
October 4, 2026
Colorado Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
Connecticut Contested The Department of Consumer Protection sent cease-and-desist letters to Kalshi, Crypto.com and Robinhood in December 2025. A federal court denied Kalshi a preliminary injunction on Aug 7, 2026, and the appeal is pending in the 2nd Circuit. The CFTC has sued Connecticut, and the Attorney General sued Kalshi in state court on Aug 27, 2026.
Sources: CT Mirror · CFTC
October 4, 2026
Delaware Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
District of Columbia Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
Florida Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
Georgia Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
Hawaii Pending HB 2198, introduced Jan 28, 2026, would define prediction markets as illegal gambling. We have not confirmed its current status.
Source: CBS Sports
October 4, 2026
Idaho Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
Illinois Contested SB 3019 (signed Jun 16, 2026) treats "exchange wagers" as sports wagering, which requires a license and tax. On Oct 2, 2026 a federal judge partly blocked the licensing and criminal provisions as applied to Kalshi-listed contracts. The challenge to the tax is still pending.
Sources: DeFi Rate · CFTC
October 4, 2026
Indiana Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
Iowa Contested Kalshi sued Iowa officials pre-emptively in March 2026. A federal court denied its request for a preliminary injunction, and lawmakers have debated legislation. October 4, 2026
Kansas Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
Kentucky Contested
Effective Jan 1, 2027 (tax)
HB 757 puts a 14.25% excise tax on prediction-market transaction fees from Jan 1, 2027. The Attorney General sued Kalshi, Polymarket, Coinbase, Robinhood and Webull on Jun 17, 2026, and the CFTC sued Kentucky. Those cases were moved to federal court. October 4, 2026
Louisiana Contested The Gaming Control Board issued an advisory that treats sports prediction markets as illegal sports wagering and warned its licensees. We have not found a lawsuit. October 4, 2026
Maine Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
Maryland Contested A federal court denied Kalshi a preliminary injunction in 2025. The 4th Circuit heard the appeal on May 7, 2026 and has not yet ruled. Robinhood does not offer sports contracts in Maryland. Baltimore has sued Kalshi and Polymarket US under its consumer-protection ordinance. October 4, 2026
Massachusetts Restricted A Suffolk Superior Court injunction obtained by the Attorney General (Jan 20, 2026) bars Kalshi's sports contracts. The Supreme Judicial Court heard the appeal in May 2026 and has not yet ruled.
Source: Yogonet
October 4, 2026
Michigan Restricted An Ingham County injunction (Sep 1, 2026) requires Kalshi to geofence sports contracts, with fines of up to $500,000 a day. Robinhood has prohibited new sports contracts in Michigan since Sep 9, 2026. October 4, 2026
Minnesota Contested Minnesota enacted the first statewide prediction-market ban (signed May 18, 2026). Before it took effect on Aug 1, a federal judge blocked it on Jul 27, 2026 as applied to Kalshi and Polymarket US. October 4, 2026
Mississippi Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
Missouri Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
Montana Available Montana sent Kalshi a cease-and-desist letter in 2025. Kalshi and Montana agreed to dismiss the resulting lawsuit on Sep 22, 2026. October 4, 2026
Nebraska Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
Nevada Restricted On Aug 28, 2026 the 9th Circuit held that Kalshi's sports contracts are not swaps and that federal law does not preempt Nevada law. A state-court order requires Kalshi to geofence Nevada. Coinbase, Polymarket US and ProphetX exclude Nevada entirely, and Robinhood does not offer sports contracts there. October 4, 2026
New Hampshire Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
New Jersey Contested On Apr 6, 2026 the 3rd Circuit upheld Kalshi's injunction against New Jersey, 2-1, finding that federal law likely preempts state law. New Jersey has asked the U.S. Supreme Court to review the case (No. 26-299). Kalshi remains live under the injunction. October 4, 2026
New Mexico Contested Tribes and pueblos have sued Kalshi, the CFTC has sued New Mexico, and Polymarket has sued the Attorney General. All three cases are pending.
Source: CFTC
October 4, 2026
New York Contested A federal court denied Kalshi a preliminary injunction on Jul 7, 2026. The Governor and Attorney General sued Kalshi on Jul 31, 2026 and Polymarket US on Sep 24, 2026, and the CFTC has sued New York. Platforms remain live while the litigation continues. October 4, 2026
North Carolina Available
Effective Jan 1, 2027 (tax)
SB 257 (signed Jul 7, 2026) puts a 6% tax on net trading-fee revenue from Jan 1, 2027 and expressly allows CFTC-registered platforms. October 4, 2026
North Dakota Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
Ohio Contested On Sep 25, 2026 the 6th Circuit affirmed the denial of Kalshi's injunction against Ohio, and the state's Casino Control Commission has issued a $5 million fine notice. Reports conflict on whether Kalshi now blocks sports contracts in Ohio, so check in the app. October 4, 2026
Oklahoma Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
Oregon Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
Pennsylvania Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
Rhode Island Contested The Attorney General sued Kalshi and Polymarket in state court, Kalshi sued the Lottery director, and the CFTC intervened. All three cases are pending.
Sources: SBC Americas · CFTC
October 4, 2026
South Carolina Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
South Dakota Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
Tennessee Contested On Sep 25, 2026 the 6th Circuit vacated Kalshi's preliminary injunction against Tennessee, which leaves Kalshi exposed to state enforcement. We have not confirmed Kalshi's current operating status there. October 4, 2026
Texas Available We have not found an enforcement action. State leaders have called for interim study, and legislation is possible in 2027.
Source: CBS Sports
October 4, 2026
Utah Restricted In August 2026 a federal court ruled for Utah, holding that the state's anti-gambling law applies. Kalshi said it would appeal, and its sports contracts are not offered in Utah. October 4, 2026
Vermont Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
Virginia Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
Washington Restricted A King County injunction, amended in August 2026, requires Kalshi to block sports, election, entertainment and similar contracts, with geofencing due by Sep 2, 2026. Financial, economic and climate contracts are not covered. An appeal is pending.
Source: KUOW
October 4, 2026
West Virginia Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
Wisconsin Contested Wisconsin sued Kalshi, Robinhood, Coinbase, Polymarket and Crypto.com in April 2026. On Jul 28, 2026 a federal court denied the CFTC's request to block the state. Platforms remain live while the cases continue.
Sources: CFTC · CBS Sports
October 4, 2026
Wyoming Available We found no major state enforcement action or enacted prediction-market law as of the verified date. Individual platforms may still restrict some contracts, so check the app.
Source: CBS Sports
October 4, 2026
Not legal advice. Status reflects our reading of the cited sources on the verified date. Laws, court orders and operator policies change, sometimes weekly.

How we keep this page accurate

Every row cites the court opinion, regulator release, statute or reporting it relies on, and shows the date we last checked it. Primary sources (courts, regulators, legislatures, operator help pages) take priority; where we rely on secondary reporting, the source is named so you can judge it. We re-check this page at least weekly and immediately after major rulings. Read our full editorial policy and methodology.

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Frequently asked questions

Are prediction markets legal in the US?
Prediction markets operated by CFTC-registered exchanges are legal under federal law. Whether sports event contracts are also subject to state gambling law is being fought in court. As of October 4, 2026, federal appeals courts disagree, and New Jersey has asked the U.S. Supreme Court to resolve the question (No. 26-299).
Why is Kalshi not available in my state?
In several states a court order or state action requires Kalshi to block some contracts — usually sports. As of our last check this applies to Massachusetts, Michigan, Nevada, Utah and Washington, and Kalshi's status in Ohio and Tennessee is uncertain after the 6th Circuit's September 25, 2026 ruling. Platforms enforce this with location checks.
What did the Supreme Court decide about prediction markets?
Nothing yet. As of October 4, 2026 there are three pending petitions: Flaherty v. KalshiEX (No. 26-299), Robinhood Derivatives v. Dreitzer (No. 26-338) and Crypto.com v. Nevada (No. 26-344). The Court has not decided whether to hear them.
Is it illegal for me to use a prediction market in a state that is suing the platform?
The state lawsuits and enforcement actions we track target platforms, not individual users. Minnesota's 2026 law did create criminal offenses, but a federal judge enjoined it on July 27, 2026 as to Kalshi and Polymarket US. This is not legal advice; if you are unsure, check your state regulator's guidance.
Guide

How prediction markets work

How Yes/No event contracts are priced, how to read the order book, maker vs taker, limit vs market orders and selling early, with worked numeric examples.

Guide

Prediction market fees explained

How prediction market fees are calculated, why they peak at 50¢, and what Kalshi, Polymarket US, Robinhood, FanDuel Predicts and IBKR charge at 10¢ to 90¢.