Prediction Markets Legality by State
CFTC-regulated event contracts operate under federal commodities law, which generally preempts conflicting state gambling statutes. A handful of state regulators have challenged that preemption — here is the current map.
| State | Status | Notes |
|---|---|---|
| Alabama (AL) | Accessible | CFTC-regulated platforms accessible. No state cease-and-desist on file. |
| Alaska (AK) | Accessible | No state-level prohibition on federally regulated event contracts. |
| Arizona (AZ) | Contested | AZ Department of Gaming issued cease-and-desist letters to Kalshi & Robinhood (2025). Federal litigation pending; platforms remain operational. |
| Arkansas (AR) | Accessible | Open to CFTC-regulated event contracts. |
| California (CA) | Contested | California has objected to certain sports event contracts; federal preemption arguments pending. |
| Colorado (CO) | Accessible | Operators active. No formal state action against CFTC venues. |
| Connecticut (CT) | Accessible | Available; tribal-state gaming compact does not preempt federal commodity law. |
| Delaware (DE) | Accessible | CFTC-regulated platforms permitted. |
| Florida (FL) | Accessible | Fully accessible 21+. No FL Gaming Control Commission action against CFTC venues. |
| Georgia (GA) | Accessible | Operators active. No state restrictions on event contracts. |
| Hawaii (HI) | Accessible | CFTC-regulated platforms available; HI bans most other forms of gambling. |
| Idaho (ID) | Accessible | No documented state-level restriction on federally licensed exchanges. |
| Illinois (IL) | Accessible | Available. No formal cease-and-desist on file. |
| Indiana (IN) | Accessible | Operators active. |
| Iowa (IA) | Accessible | Operators active. |
| Kansas (KS) | Accessible | Operators active. |
| Kentucky (KY) | Accessible | Operators active. |
| Louisiana (LA) | Contested | Louisiana Gaming Control Board has questioned event contract operators; status fluid. |
| Maine (ME) | Accessible | Operators active. |
| Maryland (MD) | Contested | Maryland Lottery & Gaming has issued formal letters to event contract operators. |
| Massachusetts (MA) | Accessible | Operators active. |
| Michigan (MI) | Contested | MI Gaming Control Board issued cease-and-desist letters in 2025; federal preemption pending. |
| Minnesota (MN) | Accessible | Operators active. |
| Mississippi (MS) | Accessible | Operators active. |
| Missouri (MO) | Accessible | Operators active. |
| Montana (MT) | Contested | MT Department of Justice has challenged sports event contracts. |
| Nebraska (NE) | Accessible | Operators active. |
| Nevada (NV) | Contested | NV Gaming Control Board has formally opposed sports event contracts; litigation ongoing — platforms continue to serve NV residents pending federal ruling. |
| New Hampshire (NH) | Accessible | Operators active. |
| New Jersey (NJ) | Contested | NJ DGE issued cease-and-desist; federal court ruled in Kalshi's favor (2025). |
| New Mexico (NM) | Accessible | Operators active. |
| New York (NY) | Accessible | Operators active. NY Gaming Commission has not issued formal action. |
| North Carolina (NC) | Accessible | Operators active. |
| North Dakota (ND) | Accessible | Operators active. |
| Ohio (OH) | Contested | Ohio Casino Control Commission has issued letters questioning sports contracts. |
| Oklahoma (OK) | Accessible | Operators active. |
| Oregon (OR) | Accessible | Operators active. |
| Pennsylvania (PA) | Accessible | Operators active. |
| Rhode Island (RI) | Accessible | Operators active. |
| South Carolina (SC) | Accessible | Operators active. |
| South Dakota (SD) | Accessible | Operators active. |
| Tennessee (TN) | Accessible | Operators active. |
| Texas (TX) | Accessible | Operators active. No state action despite no legal sports betting. |
| Utah (UT) | Contested | Utah's strict anti-gambling stance creates tension; CFTC platforms currently accessible but contested. |
| Vermont (VT) | Accessible | Operators active. |
| Virginia (VA) | Accessible | Operators active. |
| Washington (WA) | Restricted | WA's broad anti-online-gambling law historically restricts most operators; status of CFTC platforms unclear — confirm with operator before signing up. |
| West Virginia (WV) | Accessible | Operators active. |
| Wisconsin (WI) | Accessible | Operators active. |
| Wyoming (WY) | Accessible | Operators active. |
Status reflects the public regulatory posture as of the "Updated" date above and is not legal advice. Confirm current eligibility on the operator's signup page before depositing.
Full state-specific walkthrough on our Kalshi California bonus page.
State Legality Questions
What does 'contested' mean?
A state regulator has issued a cease-and-desist or public objection to one or more CFTC-regulated event contract operators, but federal courts have not (yet) sided with the state. Platforms typically continue to serve users in contested states pending a federal ruling, citing preemption under the Commodity Exchange Act.
If a state is contested, can I still trade there?
Usually yes — most operators continue to onboard users from contested states until a federal court orders otherwise. Always confirm on the operator's signup flow, which performs a real-time geo-eligibility check.
Why is California's prediction-market access stable while neighboring states are contested?
California's Bureau of Gambling Control has not issued formal action against CFTC-regulated event contract exchanges, and California's gambling statutes (Penal Code §330 series) target unlicensed bookmaking and house-banked card games — not federally licensed commodity markets. State AGs in NV, AZ, and others have taken a more aggressive posture.
Disclaimer: This page is informational only and is not legal advice. State regulatory posture changes frequently; federal court rulings can shift status overnight. Always verify legality with a qualified attorney before funding an account, and rely on the operator's own real-time geo-check at signup. See our California deep-dive for state-specific detail.
Sources & references
- 1.Commodity Futures Trading Commission — Event Contracts — CFTC.gov
- 2.CFTC Final Rule on Event Contracts — CFTC.gov
- 3.KalshiEX LLC — DCM Registration — CFTC.gov
- 4.Kalshi wins court battle to offer election contracts — Reuters
- 5.Polymarket and the rise of prediction markets — Associated Press
- 6.Kalshi & prediction-markets coverage — Bloomberg
- 7.Prediction markets coverage — Wall Street Journal
External links open in a new tab. We cite primary regulatory and major news sources where possible. Citations to trusted regulators (CFTC, SEC, IRS, NOAA, .gov, .edu) are dofollow; commercial outbound links are not endorsements.