State-by-State Prediction Market Legality — 2026 Guide
Check your state in 10 seconds, then see the full picture: 20+ federal and state actions pending as of April 2026. Mixed outcomes: NJ 3rd Circuit ruled for Kalshi (Apr 6); CFTC won Federal TRO in AZ (Apr 10, PR 9211-26); OH OCCC $5M fine notice (Apr 14); KY HB 904 enacted via veto override (Apr 14); WA AG civil suit pending (Mar 27).+ states with active litigation, CEA preemption explained, platform availability map, and regulatory timeline.
States Litigating
13+
Platforms Tracked
4
Federal Status
Legal
Read Time
12 min
Quick Summary
The key takeaway from this page
State-by-State Prediction Market Legality
20+ federal and state actions pending as of April 2026. Mixed outcomes: NJ 3rd Circuit ruled for Kalshi (Apr 6); CFTC won Federal TRO in AZ (Apr 10, PR 9211-26); OH OCCC $5M fine notice (Apr 14); KY HB 904 enacted via veto override (Apr 14); WA AG civil suit pending (Mar 27).+ states challenging platforms — what it means for you
Check Your State
Instant state-by-state lookup
Type your state to see platform availability (Kalshi, Polymarket, Robinhood, FanDuel) and legal status.
36
States Available
1
Restricted
14
Active Litigation
Check Your State
Type your state name or abbreviation to see platform availability and legal status.
All States & Territories
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Available — All Platforms
Multi-State Regulatory War: Nevada, NJ, Michigan, Ohio & More
Ohio judge ruled Kalshi sports contracts must adhere to state law (March 9). Michigan AG Nessel sued Kalshi (March 3, 2026). Polymarket filed preemptive federal injunction in Michigan the next day (March 4). Ten-plus simultaneous state enforcement actions (NV, NJ, MI, OH, CT, TN, UT, NY, MD, AZ & more) — the fastest escalation in prediction market history.
Federal Clarity Act ~70¢ on Kalshi — markets pricing resolution odds.
Current Status by State
Platform access and restrictions
Detailed state-by-state platform access, legal status, restrictions, and sources. Click any row to expand.
Polymarket’s legacy non-US entity geo-blocks all US users following a $1.4M CFTC settlement in 2022 for operating an unregistered exchange. Polymarket’s new US entity (re-launched Dec 2025) operates under CFTC regulation and is available in most states (table below). Accessing the legacy site via VPN violates their Terms of Service and risks account closure or funds withholding.
| State | Legal Status | Kalshi | FanDuel | Robinhood | DraftKings | |
|---|---|---|---|---|---|---|
NevadaNV Pinned | TRO in Effect | |||||
MassachusettsMA Pinned | Lawsuit Filed | |||||
UtahUT Pinned | Lawsuit Filed | |||||
IllinoisIL Pinned | Cease-and-Desist | |||||
ArizonaAZ | CFTC TRO — Criminal Arraignment Paused | |||||
CaliforniaCA | No Formal Action | |||||
ColoradoCO | No Formal Action | |||||
ConnecticutCT | Lawsuit Filed | |||||
FloridaFL | No Formal Action | |||||
GeorgiaGA | No Formal Action | |||||
IowaIA | Lawsuit Filed | |||||
LouisianaLA | Restricted Access | |||||
MarylandMD | Lawsuit Filed | |||||
MichiganMI | Lawsuit Filed | |||||
MinnesotaMN | No Formal Action | |||||
MontanaMT | Restricted Access | |||||
New JerseyNJ | Lawsuit — Kalshi Won PI | |||||
New YorkNY | Lawsuit Filed | |||||
North CarolinaNC | No Formal Action | |||||
OhioOH | Lawsuit — Adverse Ruling + $5M Fine Notice | |||||
PennsylvaniaPA | No Formal Action | |||||
South DakotaSD | Restricted Access | |||||
TennesseeTN | Lawsuit Filed | |||||
TexasTX | No Formal Action | |||||
VirginiaVA | No Formal Action | |||||
WashingtonWA | Lawsuit Filed (March 27, 2026) | |||||
WisconsinWI | No Formal Action |
DraftKings and Robinhood access information is based on publicly available data; some entries remain unconfirmed. Cells marked indicate unverified status. Last updated: April 22, 2026.
State-by-State Summary
Overview of state positions
High-level status summary for each jurisdiction with active developments.
TRO in effect March 20, 2026 — Kalshi barred from sports, elections & entertainment contracts in NV. 9th Circuit denied stay March 19. Polymarket has been blocked since Jan 29, 2026 (preliminary injunction). PI hearing April 3, 2026. Sources: gaming.nv.gov press release; Reuters March 20, 2026.
Texas AG Ken Paxton has taken no formal action and declined to join the multi-state coalition against prediction markets. Platforms are fully available in Texas.
AG Dana Nessel sued Kalshi (March 3, 2026). Polymarket filed preemptive federal injunction in Western District of Michigan on March 4, 2026 (next day)
Ohio federal judge (Chief Judge Sarah D. Morrison) denied Kalshi's preliminary injunction on March 9, 2026, ruling sports event contracts must adhere to Ohio state law. Kalshi appealed to 6th Circuit.
The Third Circuit ruled 2-1 on April 6, 2026 that the CFTC has exclusive jurisdiction over Kalshi's sports-related event contracts, upholding Kalshi's preliminary injunction against NJ DGE. New Jersey may still seek en banc rehearing or Supreme Court review.
Maryland AG filed suit challenging prediction market contracts. 4th Circuit appeal pending.
Massachusetts AG filed suit challenging prediction market contracts under state gambling law.
Connecticut AG filed suit challenging prediction market contracts.
Kalshi won preliminary injunction (Feb 19, 2026). Sports contracts continue under federal preemption ruling.
New York AG filed suit challenging prediction market contracts under state gaming law.
Utah has taken enforcement action against prediction market platforms.
Arizona AG Kris Mayes filed 20 misdemeanor criminal charges (16 unlicensed gambling + 4 election wagering) on March 17, 2026 — the first-ever criminal charges against a prediction market in the U.S. Federal judge denied Kalshi's TRO. Sports markets restricted.
Illinois issued cease-and-desist; Kalshi geo-blocked IL users at signup. Existing Kalshi account holders may retain access. CFTC filed suit against IL on April 2, 2026 (declaratory pre-emption action). Other platforms (Robinhood, FanDuel) not blocked in IL.
Iowa gaming regulators joined the multi-state enforcement effort. Platforms remain operational pending resolution.
WA AG Nick Brown filed civil lawsuit in King County Superior Court on March 27, 2026, seeking injunction, restitution, and civil penalties against Kalshi. Alleges violations of WA gambling and consumer protection laws. Platforms currently operational while case proceeds.
Some platforms restrict LA residents. Verify eligibility before trading.
Some platforms restrict MT residents due to state gaming statutes.
Some platforms restrict SD residents. Platform-specific — check terms.
CFTC-regulated platforms are generally available. No active state-level legal challenges.
Active Litigation Detail
Pending court cases and enforcement
Nevada
Enforcement Body
Nevada Gaming Control Board
Filed
Q4 2025
Claim
Prediction markets constitute “wagering” under Nevada gaming law regardless of federal CFTC oversight
Platforms Named
Kalshi, Polymarket
Legal Theory
State gaming law broadly covers wagering — CEA does not completely preempt state regulation
Counter-Action
Both platforms filed emergency appeals to 9th Circuit Court of Appeals
Significance
First state to successfully argue against CEA preemption in federal court. Judge remanded to state court (March 3, 2026). TRO issued March 20, 2026 barring Kalshi from sports/elections/entertainment contracts.
New Jersey
Enforcement Body
NJ Division of Gaming Enforcement
Filed
Q4 2025
Claim
Kalshi prediction markets constitute wagering under New Jersey gaming law
Platforms Named
Kalshi
Legal Theory
State gaming law authority — New Jersey argues federal commodities oversight does not fully displace state gaming enforcement
Counter-Action
Third Circuit ruled 2-1 (April 6, 2026) that CFTC has exclusive jurisdiction over DCM trades, upholding Kalshi's preliminary injunction. NJ may seek en banc rehearing or Supreme Court review.
Significance
First federal appeals court ruling to side with prediction markets on CEA preemption, but the case remains in litigation because New Jersey can still seek further review.
Michigan
Enforcement Body
AG Dana Nessel
Filed
March 3, 2026
Claim
Sports event contracts constitute illegal gambling under Michigan's Lawful Sports Betting Act (LSBA)
Platforms Named
Kalshi
Legal Theory
State gaming law authority — mirrors Nevada CEA preemption argument
Counter-Action
Polymarket filed preemptive federal injunction, Western District of Michigan (March 4, 2026)
Significance
Third simultaneous state enforcement action. Polymarket establishes new “sue first” defensive posture — counter-sued AG before being named defendant.
Ohio
Enforcement Body
Ohio enforcement (federal court)
Filed
March 2026
Claim
Sports event contracts are not federal swaps and must follow Ohio state gambling law
Platforms Named
Kalshi
Legal Theory
Sports contracts fall outside CFTC swap definition; state gambling law applies
Counter-Action
Kalshi appealed the ruling to the 6th Circuit Court of Appeals
Significance
Chief U.S. District Judge Sarah D. Morrison denied Kalshi's preliminary injunction on March 9, 2026. An adverse 6th Circuit ruling could set precedent across multiple states.
Arizona
Enforcement Body
AG Kris Mayes
Filed
March 17, 2026
Claim
Prediction markets operate as unlicensed gambling and election wagering under Arizona law
Platforms Named
Kalshi
Legal Theory
State criminal gambling statutes apply independent of CFTC oversight
Counter-Action
CFTC filed declaratory action against Arizona on April 2, 2026
Significance
First-ever criminal charges against a CFTC-regulated prediction market — 20 misdemeanor counts (16 unlicensed gambling + 4 election wagering). Federal judge denied Kalshi’s TRO. Sports markets restricted.
The Federal vs State Fight
CEA preemption and jurisdiction
Federal Argument (CEA Preemption)
- The Commodity Exchange Act (CEA) grants the CFTC exclusive jurisdiction over futures contracts
- Prediction markets authorized by the CFTC are federally regulated financial instruments
- State gambling laws cannot override federal financial regulation
- CFTC-designated exchanges like Kalshi operate under federal law, not state gaming commissions
- Under the Supremacy Clause, federal law governs when there’s a conflict with state law
States' Argument (Gaming Law)
- State gaming laws broadly cover “wagering” regardless of federal oversight
- Prediction markets functionally resemble sports betting under state definitions
- The CEA does not explicitly preempt ALL state regulation — only futures contract enforcement
- States retain police power to regulate gambling within their borders
- Thirteen-plus states simultaneously filing = pattern, not outlier
Current Rulings
Nevada: Judge sided with the state — CEA does not “completely preempt” state gaming law. Cases remanded to state court. TRO issued March 20, 2026. Ohio (March 9, 2026): Chief Judge Morrison denied Kalshi’s PI, ruling sports contracts must follow state law. New Jersey (April 6, 2026): Third Circuit ruled 2-1 for Kalshi on CFTC preemption — first federal appeals court win for prediction markets.
What Happens Next
9th Circuit (Nevada) and 3rd Circuit (NJ) appeals pending further review. 6th Circuit (Ohio) and 4th Circuit (MD) appeals pending. Michigan AG Nessel sued Kalshi March 3; Polymarket counter-sued March 4. CT, TN, UT, NY, IA enforcement ongoing. Arizona filed first-ever criminal charges March 17, 2026 (20 misdemeanors). CFTC filed pre-emption declaratory actions against IL, AZ, CT on April 2, 2026. If any state wins definitively, others will follow the playbook.
Is My Account Safe?
What enforcement means for traders
Your account is currently accessible. The lawsuits challenge platform legality at a regulatory level — they don’t target individual users. Federal courts have issued injunctions in Nevada and New Jersey preventing state enforcement while cases proceed.
Your funds are not at immediate risk.
Nevada (Kalshi): TRO bars sports, elections, and entertainment contracts as of March 20, 2026. Non-covered markets may still be accessible. Existing accounts not forcibly closed.
Illinois (Kalshi): Geo-blocked at signup. If you opened a Kalshi account before the restriction, your account may remain active. New signups blocked.
Polymarket blocks US IPs to its legacy entity following the 2022 CFTC settlement. If you’re accessing via VPN: this violates Polymarket’s Terms of Service. Your account can be closed and funds withheld if US residency is detected.
This is a terms-of-service risk, not a personal legal risk. No US user has been criminally charged for using Polymarket.
Most states have no active challenges. CFTC-regulated platforms (Kalshi, FanDuel, Robinhood, DraftKings) operate under federal jurisdiction which generally preempts state gaming laws for event-contract derivatives.
No special precautions needed.
State-Level Regulatory Timeline
Key dates and deadlines
CFTC confirms prediction market futures contracts fall under federal jurisdiction
Kalshi publicly launches — first US prediction market exchange with CFTC DCM status (approved November 2020)
Sept 2023: CFTC prohibits Kalshi congressional control contracts (3-1-1 vote). Nov 2023: Kalshi sues CFTC. Sept 2024: D.C. District Court rules for Kalshi. May 2025: CFTC drops appeal.
Polymarket re-enters US market via QCX LLC (CFTC DCM via QCX LLC)
Nevada Gaming Board challenges Kalshi and Polymarket under state gaming law
Multiple states (NV, NJ, MD, MA, MI, OH, CT, TN, NY, UT, AZ, IA, IL, WA) issue cease-and-desist orders or file lawsuits against prediction markets. 38 states state AGs file amicus briefs supporting state authority.
Nevada preliminary injunction blocks Polymarket from operating in the state.
Federal judge remands both Nevada cases to state court. CEA preemption argument fails at district level.
Michigan AG Dana Nessel sues Kalshi. Polymarket preemptively counter-sues Michigan AG in federal court.
Chief U.S. District Judge Sarah D. Morrison denies Kalshi preliminary injunction in Ohio — rules sports event contracts are not federal swaps and must follow state gambling law. Kalshi appealed to 6th Circuit.
Arizona AG Kris Mayes files 20 misdemeanor criminal charges against Kalshi — first-ever criminal prosecution of a CFTC-regulated prediction market.
Nevada TRO issued barring Kalshi from offering sports, elections, and entertainment event contracts. 9th Circuit denies Kalshi's emergency stay.
CFTC files declaratory pre-emption actions against Illinois, Arizona, and Connecticut.
Third Circuit rules 2-1 in KalshiEX LLC v. Flaherty that the CFTC has exclusive jurisdiction over Kalshi's sports-related event contracts in NJ — first federal appeals court win for prediction-market preemption. NJ may seek en banc or SCOTUS review.
U.S. District Judge Michael Liburdi grants CFTC/DOJ TRO in Arizona — bars Arizona from enforcing gambling laws against CFTC-regulated DCMs. First federal court order protecting prediction markets from state criminal enforcement. Kalshi’s April 13 arraignment called off. AZ AG evaluating next steps.
Ohio Casino Control Commission issues $5M notice of intent to fine Kalshi (unlicensed sports-betting operation, age verification violations, missing 20% gaming tax, non–Time-Out-Ohio self-exclusion). Same day: Kentucky overrides Gov. Beshear’s veto of HB 904 — law forces sports-betting licensees (DraftKings, FanDuel, Fanatics) to choose between KY sportsbook license and offering prediction markets in KY.
9th Circuit (NV), 3rd Circuit (NJ further review), 4th Circuit (MD), 6th Circuit (OH) appeals pending. WA AG civil suit (March 27). MI, CT, TN, NY, UT, IA enforcement ongoing. Congress considering Clarity Act.
Platform Availability Matrix (Quick Reference)
Where each platform is available
| State | Kalshi | Polymarket | Robinhood | FanDuel |
|---|---|---|---|---|
| Nevada | Check | Check | Check | Live |
| New Jersey | Live | Live | Check | Live |
| Maryland | Live | Live | Check | Live |
| Texas | Live | Live | Live | Live |
| Michigan | Live | Live | Live | Live |
| Ohio | Live | Live | Live | Live |
| Washington | Check | Check | Live | Check |
| Louisiana | Check | Check | Live | Check |
| Arizona | Check | Check | Check | Check |
| Montana | Check | Check | Live | Check |
| South Dakota | Check | Check | Live | Check |
| New York | Live | Live | Live | Live |
| California | Live | Live | Live | Live |
| Florida | Live | Live | Live | Live |
| Massachusetts | Check | Live | Live | Live |
| Illinois | Check | Live | Live | Live |
| All Other States | Live | Live | Live | Live |
Status based on platform terms of service as of April 2026. Availability may change — always verify with your platform. = Active litigation state.
How State Legality Works
Legal framework explained
Prediction markets in the US operate under federal CFTC regulation. Platforms like Kalshi hold Designated Contract Market (DCM) status, and Polymarket re-entered the US via a CFTC-regulated entity (QCX LLC) in December 2025 (invite-only, sports markets only; other categories coming soon).
The federal Commodity Exchange Act (CEA) gives the CFTC jurisdiction over futures contracts. However, some states argue their gambling laws still apply — creating the current multi-state legal fight. On April 6, 2026, the Third Circuit ruled 2-1 that the CFTC has exclusive jurisdiction over Kalshi's sports-related event contracts in New Jersey, the first federal appeals court ruling for prediction-market preemption. But other circuits have not resolved the issue, so state-by-state litigation still matters.
A few states (WA, LA, MT, SD) have gambling regulations that lead some platforms to voluntarily restrict access. These are platform-level decisions, not state bans — which is why Robinhood predictions remain available in most restricted states.
Why Do Some States Challenge What the CFTC Allows?
Motivations behind state action
Federal preemption basics
CFTC-licensed exchanges like Kalshi operate under the Commodity Exchange Act (CEA), which generally preempts state gaming law for derivatives. Under the Supremacy Clause, federal law governs when there’s a conflict. This is Kalshi’s core legal defense in every state lawsuit: “We are federally licensed. State gaming law doesn’t apply.”
Why states are challenging anyway
States argue sports outcome contracts are gambling, not derivatives, and the CEA doesn’t cover them. Courts haven’t definitively ruled on this. What’s notable: multiple federal district courts have issued injunctions preventing state enforcement while cases proceed — suggesting judges take the federal preemption argument seriously. The Ohio court was the notable exception, ruling against Kalshi at the preliminary injunction stage (March 9, 2026).
What would resolve this
Three paths to resolution: (a) federal circuit courts rule definitively on preemption — the 3rd Circuit ruled for Kalshi on April 6, 2026 but further review remains possible; (b) Congress passes legislation explicitly clarifying event-contract status — the Federal Clarity Act is currently trading on Kalshi (see the live market for current odds); or (c) the CFTC issues formal guidance. Congressional bills addressing this are currently pending.
Track Regulatory Changes in Real Time
Our regulatory tracker monitors federal and state legislation affecting prediction markets across the US.
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