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.
| Alabama | Available |
| Alaska | Available |
| Arizona | Contested |
| Arkansas | Available |
| California | Contested |
| Colorado | Available |
| Connecticut | Contested |
| Delaware | Available |
| District of Columbia | Available |
| Florida | Available |
| Georgia | Available |
| Hawaii | Available |
| Idaho | Available |
| Illinois | Contested |
| Indiana | Available |
| Iowa | Available |
| Kansas | Available |
| Kentucky | Available |
| Louisiana | Available |
| Maine | Available |
| Maryland | Contested |
| Massachusetts | Restricted |
| Michigan | Restricted |
| Minnesota | Contested |
| Mississippi | Available |
| Missouri | Available |
| Montana | Available |
| Nebraska | Available |
| Nevada | Restricted |
| New Hampshire | Available |
| New Jersey | Available |
| New Mexico | Contested |
| New York | Contested |
| North Carolina | Available |
| North Dakota | Available |
| Ohio | Contested |
| Oklahoma | Available |
| Oregon | Available |
| Pennsylvania | Available |
| Rhode Island | Contested |
| South Carolina | Available |
| South Dakota | Available |
| Tennessee | Contested |
| Texas | Contested |
| Utah | Contested |
| Vermont | Available |
| Virginia | Available |
| Washington | Restricted |
| West Virginia | Available |
| Wisconsin | Contested |
| Wyoming | Available |
Out there means the foremost platforms function with no energetic state problem affecting entry. Contested means platforms are typically nonetheless working, however an energetic lawsuit or enforcement motion might change entry, and sports activities contracts could also be restricted whereas different markets keep open. Restricted means a courtroom order at present blocks or limits entry, most frequently to sports activities occasion contracts.
How State Restrictions Work
Though prediction markets are federally regulated, entry on the bottom varies by state due to ongoing litigation. Two factors clarify many 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 courtroom order, platforms sometimes cease providing the affected contracts to customers positioned there whereas the case performs out. As a result of rulings, injunctions, and appeals arrive on their very own timelines, a state can transfer between obtainable, contested, and restricted inside weeks.
Which States Are Difficult Prediction Markets?
The next states have energetic lawsuits, enforcement actions, or courtroom orders affecting prediction markets as of August 2026. That is an evolving panorama, so examine present availability earlier than buying and selling.
Arizona
Arizona filed legal costs in opposition to Kalshi, alleging violations of state gaming and election legal guidelines. A federal courtroom issued an injunction defending the platforms, and the state’s attraction is pending. Prediction markets stay obtainable in Arizona for now.
California
Three California tribes argue that prediction markets battle with tribal gaming rights and the state’s sports activities betting ban. A federal decide denied their injunction, and the case is on attraction to the Ninth Circuit. California’s Digital Monetary Property Legislation additionally took impact July 1, including extra uncertainty. Buying and selling stays obtainable for now.
Connecticut
Connecticut despatched cease-and-desist letters arguing that sports activities and election contracts quantity to unlawful on-line playing. The CFTC countersued to say federal jurisdiction and secured an injunction. Platforms proceed to function whereas the case proceeds.
Illinois
Illinois handed a legislation including a tax and a licensing requirement for prediction markets. Kalshi sued in June, and the state agreed to not implement whereas a preliminary injunction is pending. Buying and selling stays obtainable within the meantime.
Maryland
Maryland argues that sports activities occasion contracts are unlicensed sports activities bets topic to state gaming legislation. A federal decide denied Kalshi’s request to dam enforcement, and the case is on attraction to the Fourth Circuit. Sports activities contracts are contested in Maryland pending the end result.
Massachusetts
A courtroom granted an injunction blocking Kalshi from providing sports activities occasion contracts in Massachusetts, and the state’s highest courtroom has appeared skeptical of the platform’s place. Sports activities contracts stay blocked, although non-sports markets should still be obtainable.
Michigan
A Michigan courtroom ordered Kalshi to pause operations, one among a number of state actions concentrating on sports activities occasion contracts. Kalshi is complying whereas it argues the dispute belongs in federal courtroom. Entry to sports activities contracts is at present restricted.
Minnesota
Minnesota signed a first-of-its-kind legislation in Could 2026 that might have criminalized working prediction markets, set to take impact August 1. Days earlier than, a federal decide granted a preliminary injunction pausing the ban after discovering it probably preempted by federal legislation. Kalshi and Polymarket proceed to serve Minnesota customers whereas the case proceeds.
Nevada
Nevada has probably the most restrictive posture within the nation. Court docket orders block the foremost platforms from working, the state Supreme Court docket denied an emergency keep, and the dispute is earlier than the Ninth Circuit. Sports activities and different contracts are at present unavailable in Nevada.
New Mexico
New Mexico moved to implement state playing legal guidelines in opposition to prediction markets, and Polymarket filed swimsuit in response. The dispute is ongoing, and entry might change relying on the end result.
New York
New York has proposed the ORACLE Act to extra tightly regulate prediction exchanges, and the CFTC preemptively sued to dam enforcement. A category motion was additionally filed in opposition to Kalshi. For now, the foremost platforms proceed to function in New York.
Ohio
The Ohio On line casino Management Fee fined Kalshi $5 million for working with out assembly state gaming necessities, and a decrease courtroom upheld the high-quality. The CFTC has challenged the ruling on the Sixth Circuit. Sports activities contracts are contested in Ohio.
Rhode Island
Rhode Island’s legal professional basic sued Kalshi and Polymarket, arguing they function as unlawful gaming platforms. The CFTC countersued to say federal jurisdiction. The case is new, with no rulings but, and platforms proceed to function.
Tennessee
Tennessee argues the platforms function as unlicensed sportsbooks, however the CFTC secured a federal injunction blocking enforcement. Tennessee appealed to the Sixth Circuit and is in search of an expedited listening to. Buying and selling stays obtainable for now.
Texas
Texas broadly bans most playing underneath its structure, and state committees have been directed to analyze the platforms, with findings anticipated to tell motion in 2027. Prediction markets stay operational in Texas within the meantime.
Utah
Utah, the place most playing is unlawful, not too long ago restricted proposition betting in a approach that applies to prediction markets. Kalshi preemptively sued the state and warned it could block Utah customers if it doesn’t safe reduction. Sports activities and prop contracts are contested.
Washington
Washington regulators moved to implement state playing legal guidelines in opposition to the platforms, and requests for emergency injunctions have been denied within the Ninth Circuit. That has opened the door to state-level restrictions, and entry is at present restricted.
Wisconsin
Wisconsin’s legal professional basic filed a number of lawsuits arguing sports activities occasion contracts operate like on line casino sportsbooks, and the CFTC countersued to defend its jurisdiction. A tribal nation additionally filed a federal swimsuit. The case is ongoing, and platforms proceed to function.
Prediction Markets in States With out Authorized Sports activities Betting
Prediction markets have drawn probably the most curiosity in states with out authorized on-line sports activities betting.
In locations like California and Texas, the place there aren’t any authorized on-line sportsbooks, CFTC-regulated occasion contracts on sports activities outcomes are one of many few authorized methods to commerce on video games, which makes availability there a high-stakes query.
Florida, the place on-line sports activities betting runs by a single operator, is an analogous case. For a full breakdown of the platforms and their presents, see the FOX Sports activities best prediction markets guide.
Which Prediction Market Platforms Are Out there?
Most FOX Sports activities protection facilities on the platforms with the deepest liquidity and broadest protection. Kalshi and Polymarket are the 2 largest CFTC-regulated prediction markets within the nation, and OG, a Crypto.com model powered by Nadex, is a more moderen entrant. Availability differs by platform, so the notes under are a place to begin slightly than a assure.
- 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.
As a result of every platform units its personal availability, the most secure transfer is to open the app and ensure your state earlier than funding an account.
Accountable Buying and selling
Buying and selling occasion contracts includes actual danger of loss and isn’t appropriate for everybody. By no means commit greater than you possibly can afford to lose, and evaluate every market query, the contract value, and the settlement guidelines earlier than you are taking a place. If buying and selling stops being enjoyable or begins inflicting hurt, assist is on the market.
Prediction Market Authorized Standing FAQs
Are prediction markets authorized in the USA?
Sure. Prediction markets are regulated by the CFTC and are authorized on the federal degree in all 50 states and Washington, DC. Some states are difficult that standing in courtroom, which may have an effect on entry to sure markets.
Which states limit prediction markets?
As of August 2026, Nevada has probably the most restrictive posture, with the foremost platforms blocked. Massachusetts, Michigan, and Washington restrict sports activities occasion contracts underneath courtroom orders. Greater than a dozen different states have energetic lawsuits that would change entry.
Can I commerce sports activities prediction markets in my state?
In most states, sure. Sports activities occasion contracts are the principle goal of state challenges, so they might be paused in states with courtroom orders even when different markets keep open. Test your platform’s availability web page to substantiate.
Why are some states attempting to ban prediction markets?
A number of states argue that sports activities occasion contracts operate like sports activities betting and will require a state gaming license. The CFTC says it holds unique federal jurisdiction over occasion contracts, and courts have cut up on the query.
Are prediction markets the identical as sports activities betting?
No. Prediction markets are federally regulated exchanges the place you commerce occasion contracts priced between $0 and $1 primarily based on likelihood. Sportsbooks are state-licensed operators that set odds and take the opposite facet of your wager.
What occurs to my funds if my state restricts a platform?
If a platform pauses in your state, it would sometimes cease new trades for customers positioned there. CFTC buyer protections are designed to protect entry to your funds, however the specifics rely upon the platform, so evaluate its phrases and assist channels.
Will prediction markets be authorized all over the place?
It’s unsettled. The disputes might attain the Supreme Court docket, and the CFTC has proposed new federal guidelines. For now, the map retains shifting, so deal with any state’s standing as present just for the second.
