Are Prediction Markets Legal? State-by-State Tracker

Last updated: July 15, 2026

Kalshi, Polymarket, and Robinhood event contracts sit in the middle of an active federal-vs-state legal fight. This page tracks where each state actually stands -- not where any single company's marketing claims it stands -- with a source and a last-verified date on every row. See the full regulatory timeline for how we got here.

This is not legal advice. The status of prediction markets is genuinely contested, varies by contract type (sports vs. non-sports) and by state, and changes on a roughly weekly basis in mid-2026. Federal appellate courts are currently split -- the Third Circuit ruled for Kalshi on preemption grounds (April 6, 2026) while the Southern District of New York ruled against Kalshi on the same legal question (July 8, 2026). Do not rely on this page, or any single source, to decide whether trading on a given platform from your state is lawful. Consult a licensed attorney in your jurisdiction and check the primary source cited in each row below.

What's actually being fought over?

Kalshi and Polymarket register their contracts with the CFTC as swaps or event contracts on a designated contract market. State gaming regulators argue that the sports-related versions of those contracts -- betting on who wins a game, a point spread, or a player prop -- are functionally identical to sports betting, which most states require a separate gaming license to offer.

The legal question is whether the Commodity Exchange Act's grant of exclusive federal jurisdiction over swaps "preempts" (overrides) state gambling law for these specific contracts. Federal courts disagree. Non-sports event contracts (elections, economic indicators, weather) are largely not part of this fight, with Minnesota's general ban and Nevada's broader restriction as the two notable exceptions.

Where things stand right now

  • 30 states have no reported cease-and-desist order, lawsuit, or enforcement action against prediction market platforms.
  • 13 states have active litigation underway, with platforms generally still operating pending a ruling.
  • 7 states currently have a court order or regulator action blocking some contracts (usually sports-specific) right now.
  • 1 state (Minnesota) has enacted an outright ban, though it isn't effective yet and is itself being challenged in federal court.

Track live cross-platform prices while you weigh the legal picture on the Odds Reference dashboard.

State-by-State Legal Status

Sorted alphabetically. Every row has its own source and last-verified date -- click through before relying on it.

State Status Scope Note Source Verified
Alabama Available No cease-and-desist order, lawsuit, or enforcement action against prediction market platforms was identified in this state as of the last-verified date. Absence of a reported dispute is not a guarantee — this is a fast-moving landscape and a state can issue a C&D with no advance notice. RotoWire — Prediction Markets Legal Map 2026-07-15
Alaska Available No cease-and-desist order, lawsuit, or enforcement action against prediction market platforms was identified in this state as of the last-verified date. Absence of a reported dispute is not a guarantee — this is a fast-moving landscape and a state can issue a C&D with no advance notice. RotoWire — Prediction Markets Legal Map 2026-07-15
Arizona Contested Sports only AG Kris Mayes filed a 20-count criminal case against Kalshi (Mar. 17, 2026). A federal judge issued a permanent injunction blocking that case on preemption grounds (May 5, 2026) — the first district-level merits ruling for federal preemption. Arizona is expected to appeal to the Ninth Circuit; the appeal is paused pending related Ninth Circuit rulings. Arizona Mirror — permanent injunction 2026-07-15
Arkansas Available Sports only Attorney general opinion (Oct. 2025) stated prediction markets likely constitute gambling requiring licensure, but no cease-and-desist letter or lawsuit has followed as of this writing. Covers.com — legal tracker 2026-07-15
California Contested Sports only Three California tribes (Blue Lake Rancheria, Chicken Ranch Rancheria, Picayune Rancheria of Chukchansi Indians) sued Kalshi and Robinhood alleging IGRA violations on tribal land. Ninth Circuit heard oral argument July 10, 2026 with no ruling yet; the underlying suit is stayed pending that decision. Separately, California’s Digital Financial Assets Law took effect July 1, 2026 and DFPI is reviewing whether event contracts qualify as digital financial assets. Bettors Insider — Ninth Circuit tribal appeal 2026-07-15
Colorado Available No cease-and-desist order, lawsuit, or enforcement action against prediction market platforms was identified in this state as of the last-verified date. Absence of a reported dispute is not a guarantee — this is a fast-moving landscape and a state can issue a C&D with no advance notice. RotoWire — Prediction Markets Legal Map 2026-07-15
Connecticut Contested Sports only Dept. of Consumer Protection issued cease-and-desist orders to Kalshi, Polymarket, and Crypto.com (Dec. 3, 2025). The CFTC sued Connecticut (Apr. 2, 2026) to block state enforcement; the Ninth Circuit granted an injunction shielding the platforms while the appeal proceeds. CNBC — CFTC sues Arizona, Connecticut, Illinois 2026-07-15
Delaware Available No cease-and-desist order, lawsuit, or enforcement action against prediction market platforms was identified in this state as of the last-verified date. Absence of a reported dispute is not a guarantee — this is a fast-moving landscape and a state can issue a C&D with no advance notice. RotoWire — Prediction Markets Legal Map 2026-07-15
District of Columbia Available No cease-and-desist order, lawsuit, or enforcement action against prediction market platforms identified as of the last-verified date. RotoWire — Prediction Markets Legal Map 2026-07-15
Florida Available No cease-and-desist order, lawsuit, or enforcement action against prediction market platforms was identified in this state as of the last-verified date. Absence of a reported dispute is not a guarantee — this is a fast-moving landscape and a state can issue a C&D with no advance notice. RotoWire — Prediction Markets Legal Map 2026-07-15
Georgia Available No cease-and-desist order, lawsuit, or enforcement action against prediction market platforms was identified in this state as of the last-verified date. Absence of a reported dispute is not a guarantee — this is a fast-moving landscape and a state can issue a C&D with no advance notice. RotoWire — Prediction Markets Legal Map 2026-07-15
Hawaii Available General HB 2198 (introduced Jan. 28, 2026) would expand the state’s gambling definition to explicitly cover prediction markets on politics, sports, death, and catastrophe events. Not enacted as of this writing; no enforcement action taken. RotoWire — legal timeline 2026-07-15
Idaho Available No cease-and-desist order, lawsuit, or enforcement action against prediction market platforms was identified in this state as of the last-verified date. Absence of a reported dispute is not a guarantee — this is a fast-moving landscape and a state can issue a C&D with no advance notice. RotoWire — Prediction Markets Legal Map 2026-07-15
Illinois Contested Sports only Illinois Gaming Board issued cease-and-desist letters to Kalshi, Robinhood, and Crypto.com (Apr. 2025), later adding Polymarket US (Jan. 2026). The CFTC sued Illinois (Apr. 2, 2026); the Ninth Circuit granted an injunction blocking state enforcement pending appeal. CNBC — CFTC sues Arizona, Connecticut, Illinois 2026-07-15
Indiana Available No cease-and-desist order, lawsuit, or enforcement action against prediction market platforms was identified in this state as of the last-verified date. Absence of a reported dispute is not a guarantee — this is a fast-moving landscape and a state can issue a C&D with no advance notice. RotoWire — Prediction Markets Legal Map 2026-07-15
Iowa Contested Sports only Kalshi filed a preemptive federal suit against AG Brenna Bird (Mar. 11, 2026) after she signaled Iowa considers its contracts unlawful. No preliminary-injunction ruling had been issued as of the most recent reporting. Iowa Capital Dispatch 2026-07-15
Kansas Available No cease-and-desist order, lawsuit, or enforcement action against prediction market platforms was identified in this state as of the last-verified date. Absence of a reported dispute is not a guarantee — this is a fast-moving landscape and a state can issue a C&D with no advance notice. RotoWire — Prediction Markets Legal Map 2026-07-15
Kentucky Contested Sports only AG Russell Coleman filed three lawsuits (June 17, 2026) against Kalshi, Polymarket, Coinbase, Robinhood, and VGW alleging illegal gambling. A new 14.25% excise tax on operator fee revenue (HB 757) also took effect. The CFTC sued Kentucky (June 23–24, 2026) to block the state suits; no injunction ruling yet. Casino.org — Kentucky AG lawsuits 2026-07-15
Louisiana Available No cease-and-desist order, lawsuit, or enforcement action against prediction market platforms was identified in this state as of the last-verified date. Absence of a reported dispute is not a guarantee — this is a fast-moving landscape and a state can issue a C&D with no advance notice. RotoWire — Prediction Markets Legal Map 2026-07-15
Maine Available No cease-and-desist order, lawsuit, or enforcement action against prediction market platforms was identified in this state as of the last-verified date. Absence of a reported dispute is not a guarantee — this is a fast-moving landscape and a state can issue a C&D with no advance notice. RotoWire — Prediction Markets Legal Map 2026-07-15
Maryland Restricted Sports only A federal district court denied Kalshi’s request for injunctive relief (Aug. 2025), leaving Maryland free to treat sports contracts as unlicensed betting while the case proceeds. The Fourth Circuit heard oral arguments May 7, 2026 and appeared skeptical of Kalshi’s preemption argument ("this just seems like gambling" — Judge Thacker). No ruling yet. Law.com — Fourth Circuit oral arguments 2026-07-15
Massachusetts Restricted Sports only AG Andrea Joy Campbell sued Kalshi in Suffolk Superior Court (Aug. 2025); a judge granted a preliminary injunction (Jan. 20, 2026) letting the state bar Kalshi’s sports contracts. Polymarket separately sued Campbell (Feb. 9, 2026). The Massachusetts Supreme Judicial Court took direct appellate review and, at oral argument, appeared inclined to side with the state — the first state high court to address the issue. No final ruling yet. Courthouse News — Massachusetts high court 2026-07-15
Michigan Restricted Sports only AG Dana Nessel secured a temporary restraining order in Ingham County Circuit Court (June 29, 2026) halting KalshiEx’s sports contracts, with a $120,000/day noncompliance fine. A hearing on extending the order was held July 13, 2026; the outcome was not yet confirmed in public reporting as of this writing, so treat this as a live situation that may have already changed. Michigan AG press release 2026-07-15
Minnesota Banned General Gov. Tim Walz signed SF 4760 (May 18, 2026), making Minnesota the first US state to enact an outright ban on prediction markets — a felony to operate, host, or promote one, not limited to sports contracts. The ban is scheduled to take effect Aug. 1, 2026. The CFTC and DOJ sued the next day seeking to enjoin it; a federal judge heard arguments July 2, 2026 and had not ruled as of this writing, meaning the law is still on track to take effect unless the court intervenes first. MinnLawyer — CFTC sues to block ban 2026-07-15
Mississippi Available No cease-and-desist order, lawsuit, or enforcement action against prediction market platforms was identified in this state as of the last-verified date. Absence of a reported dispute is not a guarantee — this is a fast-moving landscape and a state can issue a C&D with no advance notice. RotoWire — Prediction Markets Legal Map 2026-07-15
Missouri Available No cease-and-desist order, lawsuit, or enforcement action against prediction market platforms was identified in this state as of the last-verified date. Absence of a reported dispute is not a guarantee — this is a fast-moving landscape and a state can issue a C&D with no advance notice. RotoWire — Prediction Markets Legal Map 2026-07-15
Montana Contested Sports only An April 2025 non-enforcement agreement (tied to Montana’s separate Nevada-adjacent case) dissolved in November 2025. Montana’s Gambling Control Division issued a second cease-and-desist letter (Apr. 6, 2026); Kalshi sued the state in federal court the same month. No ruling yet. SBC Americas — Montana second C&D 2026-07-15
Nebraska Available No cease-and-desist order, lawsuit, or enforcement action against prediction market platforms was identified in this state as of the last-verified date. Absence of a reported dispute is not a guarantee — this is a fast-moving landscape and a state can issue a C&D with no advance notice. RotoWire — Prediction Markets Legal Map 2026-07-15
Nevada Restricted General Nevada Gaming Control Board sued Polymarket’s parent (Jan. 19, 2026) and Kalshi (Feb. 18, 2026). A state court issued a temporary restraining order (Mar. 20, 2026) covering sports, election, and entertainment contracts. As of a June 2, 2026 tracker update, major platforms had removed those contract types for Nevada users. This is broader than a sports-only dispute. Axios Detroit / RotoWire tracker 2026-07-15
New Hampshire Available No cease-and-desist order, lawsuit, or enforcement action against prediction market platforms was identified in this state as of the last-verified date. Absence of a reported dispute is not a guarantee — this is a fast-moving landscape and a state can issue a C&D with no advance notice. RotoWire — Prediction Markets Legal Map 2026-07-15
New Jersey Contested Sports only New Jersey’s Division of Gaming Enforcement issued a cease-and-desist (early 2025); a federal court granted Kalshi a preliminary injunction (Apr. 28, 2025). The Third Circuit affirmed that injunction 2-1 on April 6, 2026 (KalshiEX v. Flaherty), the first federal appellate ruling holding the CEA preempts state gambling law for sports event contracts. Kalshi currently operates in NJ; the state is seeking Supreme Court review (extended filing deadline of Aug. 4, 2026). Skadden — Third Circuit affirms injunction 2026-07-15
New Mexico Contested Sports only Four tribes/pueblos (Mescalero Apache, Pojoaque, Sandia, Isleta) sued Kalshi (May 2026) alleging illegal sports betting on tribal lands. AG Raúl Torrez separately sued in state court (June 4, 2026). The CFTC sued New Mexico (June 12, 2026) to block state enforcement. No injunction ruling yet on any front. Albuquerque Journal — tribes sue Kalshi 2026-07-15
New York Restricted Sports only Kalshi sued New York after a cease-and-desist letter (Oct. 27, 2025). SDNY Judge Analisa Torres denied Kalshi’s request for a preliminary injunction (July 8, 2026), ruling that New York gambling law as applied to sports event contracts is not preempted by the Commodity Exchange Act — a direct split from the Third Circuit’s April ruling. Kalshi filed a notice of appeal the same day. NY1 — federal judge denies Kalshi 2026-07-15
North Carolina Available General Gov. Josh Stein signed SB 257 (July 7, 2026) as part of the state budget, explicitly recognizing the CFTC’s "exclusive federal regulatory authority" over CFTC-licensed prediction markets. The law imposes a 6% tax on operators’ net trading-fee revenue from NC residents starting Jan. 1, 2027, but creates no separate licensing requirement — one of the only states to legislatively side with the federal preemption position rather than fight it. PYMNTS — North Carolina makes prediction markets legal 2026-07-15
North Dakota Available No cease-and-desist order, lawsuit, or enforcement action against prediction market platforms was identified in this state as of the last-verified date. Absence of a reported dispute is not a guarantee — this is a fast-moving landscape and a state can issue a C&D with no advance notice. RotoWire — Prediction Markets Legal Map 2026-07-15
Ohio Restricted Sports only A federal district court denied Kalshi’s preliminary injunction (Mar. 10, 2026), ruling sports event contracts are not "swaps" — the opposite conclusion from Tennessee’s federal court. The Ohio Casino Control Commission moved to fine Kalshi $5 million for allegedly operating unlicensed sports gaming since ~Jan. 2025 (announced Apr. 14, 2026); the Sixth Circuit denied Kalshi’s emergency injunction request (Apr. 24, 2026). Kalshi is now contesting the fine itself in Franklin County Court of Common Pleas (filed June 29, 2026). DeFi Rate — Kalshi sues Ohio over $5M fine 2026-07-15
Oklahoma Available No cease-and-desist order, lawsuit, or enforcement action against prediction market platforms was identified in this state as of the last-verified date. Absence of a reported dispute is not a guarantee — this is a fast-moving landscape and a state can issue a C&D with no advance notice. RotoWire — Prediction Markets Legal Map 2026-07-15
Oregon Available No cease-and-desist order, lawsuit, or enforcement action against prediction market platforms was identified in this state as of the last-verified date. Absence of a reported dispute is not a guarantee — this is a fast-moving landscape and a state can issue a C&D with no advance notice. RotoWire — Prediction Markets Legal Map 2026-07-15
Pennsylvania Available General HB 2497 (a proposed taxation/regulatory framework) and SR 276 (a resolution urging Congress to address insider trading on prediction markets) have been introduced but not enacted. No enforcement action against platforms identified. NCSL — 2026 state legislation summary 2026-07-15
Rhode Island Contested Sports only Rhode Island’s AG sued Kalshi (late May 2026); the CFTC counter-sued Rhode Island as one of nine states in its preemption campaign. No injunction ruling on record yet. RotoWire — legal timeline 2026-07-15
South Carolina Available No cease-and-desist order, lawsuit, or enforcement action against prediction market platforms was identified in this state as of the last-verified date. Absence of a reported dispute is not a guarantee — this is a fast-moving landscape and a state can issue a C&D with no advance notice. RotoWire — Prediction Markets Legal Map 2026-07-15
South Dakota Available No cease-and-desist order, lawsuit, or enforcement action against prediction market platforms was identified in this state as of the last-verified date. Absence of a reported dispute is not a guarantee — this is a fast-moving landscape and a state can issue a C&D with no advance notice. RotoWire — Prediction Markets Legal Map 2026-07-15
Tennessee Contested Sports only Kalshi sued the Tennessee Sports Wagering Council after a cease-and-desist (Jan. 8, 2026). A federal judge granted Kalshi a preliminary injunction (Feb. 20, 2026), ruling sports contracts are likely CFTC-regulated swaps. Tennessee is appealing to the Sixth Circuit on an expedited basis alongside the related Ohio case; oral arguments are scheduled for July 30, 2026. Gaming Intelligence — Tennessee AG appeal 2026-07-15
Texas Available Sports only Lt. Gov. Dan Patrick has urged the legislature to close "regulatory gray areas," and interim committees are studying prediction markets for possible action in the 2027 session. No enforcement action has been filed and platforms operate normally as of this writing. RotoWire — legal timeline 2026-07-15
Utah Contested Sports only Kalshi sued Gov. Spencer Cox and state officials preemptively (Feb. 24, 2026). Utah gave the company a 30-day enforcement notice in April 2026. A federal judge has taken Kalshi’s preliminary-injunction request under advisement with no hearing date set as of this writing. Fox 13 Now — Kalshi seeks injunction against Utah 2026-07-15
Vermont Available General HB 913 (introduced 2026) would prohibit certain prediction-market products classified as securities. Not enacted; no enforcement action identified. NCSL — 2026 state legislation summary 2026-07-15
Virginia Available HB 271 directs the Virginia Gaming Commission to study prediction markets, with a report due Oct. 1, 2029. No enforcement action; platforms operate normally. NCSL — 2026 state legislation summary 2026-07-15
Washington Restricted Sports only AG Nick Brown sued Kalshi (Mar. 28, 2026) seeking a permanent injunction; Robinhood and Kalshi each filed preemptive federal suits against the state. The Ninth Circuit denied Kalshi’s request for a stay pending appeal, clearing a path for Washington’s state-court enforcement to proceed. DeFi Rate — Ninth Circuit denies Kalshi stay 2026-07-15
West Virginia Available No cease-and-desist order, lawsuit, or enforcement action against prediction market platforms was identified in this state as of the last-verified date. Absence of a reported dispute is not a guarantee — this is a fast-moving landscape and a state can issue a C&D with no advance notice. RotoWire — Prediction Markets Legal Map 2026-07-15
Wisconsin Contested Sports only Wisconsin DOJ sued Kalshi, Coinbase, Robinhood, Polymarket, and Crypto.com (Apr. 23, 2026) alleging illegal sports betting; the CFTC counter-sued the state (Apr. 28, 2026). Wisconsin’s preliminary-injunction motion was fully briefed as of July 14, 2026 (reply briefs just filed); defendants must otherwise respond to the complaint by July 20, 2026. No ruling yet. CoinDesk — Wisconsin sues five platforms 2026-07-15
Wyoming Available No cease-and-desist order, lawsuit, or enforcement action against prediction market platforms was identified in this state as of the last-verified date. Absence of a reported dispute is not a guarantee — this is a fast-moving landscape and a state can issue a C&D with no advance notice. RotoWire — Prediction Markets Legal Map 2026-07-15

Status Legend

Available

No cease-and-desist order, lawsuit, or court-ordered block identified against prediction market platforms as of the last-verified date.

C&D Issued

A state regulator has issued a cease-and-desist letter, but it has not (yet, per available reporting) escalated into an active court case or an enforceable block.

Contested

Active litigation (state vs. platform, platform vs. state, CFTC vs. state, or a tribal suit) is underway. Platforms are generally still operating in the state while the case proceeds, but that could change with the next ruling.

Restricted

A court order, consent arrangement, or regulator action is currently blocking some or all event contracts (usually sports-specific) in this state right now.

Banned

A state statute prohibits prediction markets outright. Note the effective date — a signed ban is not necessarily in effect yet, and may itself be the subject of a federal preemption suit.

Sports only

Dispute is about sports-related event contracts specifically (who wins a game, point spreads, player props). Non-sports event contracts (politics, economics, weather, entertainment) are not the subject of the dispute in this state.

General

The dispute or restriction covers prediction markets broadly, not just sports contracts.

21 States With an Active Dispute or Restriction

Quick-reference list of every state that is not currently "available" -- see the full table above for sourcing.

How did we get here?

The state-by-state fight didn't start in a vacuum. Read the month-by-month regulatory and legal timeline, covering every major CFTC action, court ruling, and state cease-and-desist order from Kalshi's first 2024 election contracts through July 2026.

View the full timeline →

Thinking of Signing Up?

Once you've checked your state's status above, our platform guides cover the actual account-opening mechanics: funding methods, fees, current offers, and each platform's own eligibility notes.

Frequently Asked Questions

Are prediction markets legal in the United States?
It depends on the state and the type of contract. Federally, Kalshi and similar exchanges are registered with the CFTC as designated contract markets, which is why they argue federal law preempts state gambling law. But federal appellate courts are split on that argument -- the Third Circuit ruled for Kalshi on preemption (April 6, 2026), while a federal judge in the Southern District of New York ruled against Kalshi on the same question (July 8, 2026). Roughly 20 states currently have active litigation, cease-and-desist orders, or court-ordered restrictions specifically targeting sports event contracts. This is not settled law -- treat any blanket claim that prediction markets are "legal everywhere" with skepticism.
Is the dispute about all prediction markets, or just sports contracts?
Almost every state dispute is specifically about sports-related event contracts (who wins a game, point spreads, player props) -- the product category regulators argue duplicates licensed sports betting. Non-sports event contracts (politics, economics, weather, entertainment) are largely not contested, with one major exception: Minnesota's May 2026 ban covers prediction markets generally, not just sports contracts, and Nevada's restrictions extend to election and entertainment contracts as well as sports.
What happened in the Third Circuit and SDNY rulings?
On April 6, 2026, the Third Circuit affirmed a preliminary injunction protecting Kalshi from New Jersey enforcement, holding 2-1 that the Commodity Exchange Act preempts state gambling law for sports event contracts traded on CFTC-registered exchanges (KalshiEX v. Flaherty). That was a preliminary-injunction ruling, not a final merits decision. On July 8, 2026, a federal judge in the Southern District of New York reached the opposite conclusion in Kalshi's case against New York, denying an injunction and ruling that New York's gambling law is not preempted. Kalshi has appealed. The two rulings create a live circuit-level conflict that may eventually reach the Supreme Court.
Has any state actually banned prediction markets?
Minnesota is the first and, as of this writing, only state to enact an outright ban (SF 4760, signed May 18, 2026), which is scheduled to take effect August 1, 2026. The CFTC and DOJ sued the next day to block it; a federal judge heard arguments July 2, 2026 without yet ruling, so the ban's fate is unresolved. No other state has an enacted ban, though several (Nevada, Michigan, New York, Ohio, Massachusetts, Maryland, Washington) currently have court orders or rulings that let the state restrict sports contracts specifically.
How often is this tracker updated?
Every row and timeline entry carries its own last-verified date and source link. Given the pace of litigation in this space -- multiple rulings some weeks -- treat any individual row as a snapshot, not a permanent fact, and check the cited source for the latest development.

Related Reading

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