Prediction markets are regulated by the federal government, which means they are legal at the national level in all 50 states and Washington, DC. Even so, where you can actually trade sports event contracts depends on your state, because several states have gone to court to challenge or block the major platforms.
This guide breaks down the legal status of prediction markets in every state as of August 2026, explains why the map keeps shifting, and covers which platforms operate where. Because this is a fast-moving legal area, always confirm current availability with a platform before you fund an account.
Are Prediction Markets Legal in the US?
Prediction markets are legal at the federal level and, under federal law, can operate in all 50 states and Washington, DC. They are overseen by the Commodity Futures Trading Commission (CFTC), the federal agency that regulates derivatives markets in the United States.
On a prediction market, you trade event contracts, which the CFTC treats as a type of swap. Each contract is a yes-or-no position on the outcome of a real-world event, with a fixed payout (usually $1) and a set expiration, and the price reflects the market’s view of how likely that outcome is.
Event contracts have traded on CFTC-regulated exchanges in the US since 2004, and the 2010 Dodd-Frank Act gave the CFTC authority over them under the Commodity Exchange Act.
Platforms offer these contracts through a Designated Contract Market, a federally regulated exchange. The CFTC has reaffirmed that it holds exclusive jurisdiction over event contracts, which sits at the center of the current disputes with several states. You can read the agency’s own overview on the CFTC prediction markets page.
Availability at the state level is where it gets complicated. A number of states argue that sports event contracts look like sports betting and should require a state gaming license, and they have moved to restrict or block the platforms. Courts have split on the question, so the map changes often.
Prediction Market Availability by State at a Glance
The table below shows the general status of prediction markets in each state as of August 2026. It reflects the leading CFTC-regulated platforms, Kalshi and Polymarket; individual platforms set their own footprints and may differ.
AlabamaAvailableAlaskaAvailableArizonaContestedArkansasAvailableCaliforniaContestedColoradoAvailableConnecticutContestedDelawareAvailableDistrict of ColumbiaAvailableFloridaAvailableGeorgiaAvailableHawaiiAvailableIdahoAvailableIllinoisContestedIndianaAvailableIowaAvailableKansasAvailableKentuckyAvailableLouisianaAvailableMaineAvailableMarylandContestedMassachusettsRestrictedMichiganRestrictedMinnesotaContestedMississippiAvailableMissouriAvailableMontanaAvailableNebraskaAvailableNevadaRestrictedNew HampshireAvailableNew JerseyAvailableNew MexicoContestedNew YorkContestedNorth CarolinaAvailableNorth DakotaAvailableOhioContestedOklahomaAvailableOregonAvailablePennsylvaniaAvailableRhode IslandContestedSouth CarolinaAvailableSouth DakotaAvailableTennesseeContestedTexasContestedUtahContestedVermontAvailableVirginiaAvailableWashingtonRestrictedWest VirginiaAvailableWisconsinContestedWyomingAvailable
Available means the major platforms operate with no active state challenge affecting access. Contested means platforms are generally still operating, but an active lawsuit or enforcement action could change access, and sports contracts may be limited while other markets stay open. Restricted means a court order currently blocks or limits access, most often to sports event contracts.
How State Restrictions Work
Even though prediction markets are federally regulated, access on the ground varies by state because of ongoing litigation. Two points explain most of the confusion.
- Sports contracts are the usual target. A state can restrict sports event contracts while leaving politics, economics, crypto, and other categories open, so a platform may be partly available rather than fully blocked.
- Availability differs by platform. Each platform decides where to operate and may geolocate users in disputed states, so one platform can be live in a state where another has paused. Always check a platform’s current availability page before you deposit.
When a state secures a court order, platforms typically stop offering the affected contracts to users located there while the case plays out. Because rulings, injunctions, and appeals arrive on their own timelines, a state can move between available, contested, and restricted within weeks.
Which States Are Challenging Prediction Markets?
The following states have active lawsuits, enforcement actions, or court orders affecting prediction markets as of August 2026. This is an evolving landscape, so check current availability before trading.
Arizona
Arizona filed criminal charges against Kalshi, alleging violations of state gaming and election laws. A federal court issued an injunction protecting the platforms, and the state’s appeal is pending. Prediction markets remain available in Arizona for now.
California
Three California tribes argue that prediction markets conflict with tribal gaming rights and the state’s sports betting ban. A federal judge denied their injunction, and the case is on appeal to the Ninth Circuit. California’s Digital Financial Assets Law also took effect July 1, adding more uncertainty. Trading remains available for now.
Connecticut
Connecticut sent cease-and-desist letters arguing that sports and election contracts amount to illegal online gambling. The CFTC countersued to assert federal jurisdiction and secured an injunction. Platforms continue to operate while the case proceeds.
Illinois
Illinois passed a law adding a tax and a licensing requirement for prediction markets. Kalshi sued in June, and the state agreed not to enforce while a preliminary injunction is pending. Trading remains available in the meantime.
Maryland
Maryland argues that sports event contracts are unlicensed sports bets subject to state gaming law. A federal judge denied Kalshi’s request to block enforcement, and the case is on appeal to the Fourth Circuit. Sports contracts are contested in Maryland pending the outcome.
Massachusetts
A court granted an injunction blocking Kalshi from offering sports event contracts in Massachusetts, and the state’s highest court has appeared skeptical of the platform’s position. Sports contracts remain blocked, though non-sports markets may still be available.
Michigan
A Michigan court ordered Kalshi to pause operations, one of several state actions targeting sports event contracts. Kalshi is complying while it argues the dispute belongs in federal court. Access to sports contracts is currently restricted.
Minnesota
Minnesota signed a first-of-its-kind law in May 2026 that would have criminalized operating prediction markets, set to take effect August 1. Days before, a federal judge granted a preliminary injunction pausing the ban after finding it likely preempted by federal law. Kalshi and Polymarket continue to serve Minnesota users while the case proceeds.
Nevada
Nevada has the most restrictive posture in the country. Court orders block the major platforms from operating, the state Supreme Court denied an emergency stay, and the dispute is before the Ninth Circuit. Sports and other contracts are currently unavailable in Nevada.
New Mexico
New Mexico moved to enforce state gambling laws against prediction markets, and Polymarket filed suit in response. The dispute is ongoing, and access could change depending on the outcome.
New York
New York has proposed the ORACLE Act to more tightly regulate prediction exchanges, and the CFTC preemptively sued to block enforcement. A class action was also filed against Kalshi. For now, the major platforms continue to operate in New York.
Ohio
The Ohio Casino Control Commission fined Kalshi $5 million for operating without meeting state gaming requirements, and a lower court upheld the fine. The CFTC has challenged the ruling at the Sixth Circuit. Sports contracts are contested in Ohio.
Rhode Island
Rhode Island’s attorney general sued Kalshi and Polymarket, arguing they operate as illegal gaming platforms. The CFTC countersued to assert federal jurisdiction. The case is new, with no rulings yet, and platforms continue to operate.
Tennessee
Tennessee argues the platforms operate as unlicensed sportsbooks, but the CFTC secured a federal injunction blocking enforcement. Tennessee appealed to the Sixth Circuit and is seeking an expedited hearing. Trading remains available for now.
Texas
Texas broadly bans most gambling under its constitution, and state committees have been directed to investigate the platforms, with findings expected to inform action in 2027. Prediction markets remain operational in Texas in the meantime.
Utah
Utah, where most gambling is illegal, recently restricted proposition betting in a way that applies to prediction markets. Kalshi preemptively sued the state and warned it may block Utah users if it does not secure relief. Sports and prop contracts are contested.
Washington
Washington regulators moved to enforce state gambling laws against the platforms, and requests for emergency injunctions were denied in the Ninth Circuit. That has opened the door to state-level restrictions, and access is currently limited.
Wisconsin
Wisconsin’s attorney general filed multiple lawsuits arguing sports event contracts function like casino sportsbooks, and the CFTC countersued to defend its jurisdiction. A tribal nation also filed a federal suit. The case is ongoing, and platforms continue to operate.
Prediction Markets in States Without Legal Sports Betting
Prediction markets have drawn the most interest in states without legal online sports betting.
In places like California and Texas, where there are no legal online sportsbooks, CFTC-regulated event contracts on sports outcomes are one of the few legal ways to trade on games, which makes availability there a high-stakes question.
Florida, where online sports betting runs through a single operator, is a similar case. For a full breakdown of the platforms and their offers, see the FOX Sports best prediction markets guide.
Which Prediction Market Platforms Are Available?
Most FOX Sports coverage centers on the platforms with the deepest liquidity and broadest coverage. Kalshi and Polymarket are the two largest CFTC-regulated prediction markets in the country, and OG, a Crypto.com brand powered by Nadex, is a newer entrant. Availability differs by platform, so the notes below are a starting point rather than a guarantee.
- Kalshi: available in most states, with sports contracts paused in the states currently under court order. See the Kalshi promo code page for the current offer.
- Polymarket: the Polymarket US app operates through a CFTC-regulated exchange and follows a broadly similar state footprint. See the Polymarket promo code page for details.
- OG: not available in New York or Arizona, with sports contracts restricted in Illinois, Maryland, Massachusetts, Michigan, Nevada, New Jersey, and Ohio. See the OG Prediction Markets promo code page for the current offer.
Because each platform sets its own availability, the safest move is to open the app and confirm your state before funding an account.
Responsible Trading
Trading event contracts involves real risk of loss and is not suitable for everyone. Never commit more than you can afford to lose, and review each market question, the contract price, and the settlement rules before you take a position. If trading stops being fun or starts causing harm, support is available.
Prediction Market Legal Status FAQs
Are prediction markets legal in the United States?
Yes. Prediction markets are regulated by the CFTC and are legal at the federal level in all 50 states and Washington, DC. Some states are challenging that status in court, which can affect access to certain markets.
Which states restrict prediction markets?
As of August 2026, Nevada has the most restrictive posture, with the major platforms blocked. Massachusetts, Michigan, and Washington limit sports event contracts under court orders. More than a dozen other states have active lawsuits that could change access.
Can I trade sports prediction markets in my state?
In most states, yes. Sports event contracts are the main target of state challenges, so they may be paused in states with court orders even when other markets stay open. Check your platform’s availability page to confirm.
Why are some states trying to ban prediction markets?
Several states argue that sports event contracts function like sports betting and should require a state gaming license. The CFTC says it holds exclusive federal jurisdiction over event contracts, and courts have split on the question.
Are prediction markets the same as sports betting?
No. Prediction markets are federally regulated exchanges where you trade event contracts priced between $0 and $1 based on probability. Sportsbooks are state-licensed operators that set odds and take the other side of your bet.
What happens to my funds if my state restricts a platform?
If a platform pauses in your state, it will typically stop new trades for users located there. CFTC customer protections are designed to preserve access to your funds, but the specifics depend on the platform, so review its terms and support channels.
Will prediction markets be legal everywhere?
It is unsettled. The disputes could reach the Supreme Court, and the CFTC has proposed new federal rules. For now, the map keeps shifting, so treat any state’s status as current only for the moment.