State-by-State: What the Legal Fights Mean for Prediction Market Users
Track every state lawsuit, injunction, and cease-and-desist — who filed, which platforms are affected, and what users in each state can actually do right now.
Legal actions change quickly
State legal actions are actively litigated and can shift week-to-week. Dates and access status marked ⚠️ PENDING are awaiting primary-source verification. For the most current access status, use the State Checker.
New Jersey is the current user-friendly edge case
On April 6, 2026, the Third Circuit ruled for Kalshi in New Jersey and said the CFTC has exclusive jurisdiction over DCM trades. That means New Jersey users are not facing an immediate access loss today. It is a major appeals-court win, not a nationwide final answer, so users should still watch for rehearing or Supreme Court moves.
Active Legal Actions
| State | Action | Filed | Platforms | Impact |
|---|---|---|---|---|
New Jersey NJ | Lawsuit State gaming enforcement | 2026-01-01⚠️ Unverified | Kalshi | 🟢 Low impact |
Washington WA | Lawsuit CEA preemption | 2026-04-01 | Kalshi Robinhood Coinbase | 🔴 High impact |
Nevada NV | Injunction / TRO State gambling statute | 2026-03-20⚠️ Unverified | Kalshi | 🔴 High impact |
Massachusetts MA | Lawsuit State gambling statute | 2025-09-01⚠️ Unverified | Kalshi | 🔴 High impact |
Arizona AZ | Criminal Charges Criminal gambling charges | 2026-03-17⚠️ Unverified | Kalshi | 🔴 High impact |
New York NY | Cease & Desist State gambling statute | 2025-06-01⚠️ Unverified | Kalshi Polymarket | 🟡 Moderate impact |
New York NY | civil-lawsuit Unlicensed gambling (NY civil) | 2026-04-21⚠️ Unverified | Coinbase Gemini | 🔴 High impact |
Connecticut CT | Cease & Desist State gambling statute | 2025-12-01⚠️ Unverified | Kalshi Polymarket | 🔴 High impact |
Illinois IL | Cease & Desist State gambling statute | 2025-12-01⚠️ Unverified | Kalshi | 🔴 High impact |
Michigan MI | Lawsuit State sports betting law | 2026-03-01⚠️ Unverified | Kalshi | 🟡 Moderate impact |
Ohio OH | Regulatory Fine (Notice of Intent) State gaming law enforcement + $5M fine | 2026-04-14 | Kalshi | 🔴 High impact |
Kentucky KY | statute Statutory prohibition on licensee-operated PMs in KY | 2026-04-14 | Draftkings Fanduel Fanatics | 🔴 High impact |
Kentucky KY | tax-proposed Proposed 14.25% excise tax on standalone PM exchanges | 2026-04-09⚠️ Unverified | Kalshi Polymarket Robinhood | 🟡 Moderate impact |
Minnesota MN | Lawsuit Proposed state-law felony ban (broadest state ban to date) | 2026-04-14⚠️ Unverified | Kalshi Polymarket Robinhood Coinbase Draftkings Fanduel Fanatics | 🟡 Moderate impact |
State-by-State Details
What happened, who is affected, what access looks like today, and what to watch next.
What Should You Do If Your State Is Affected?
Use the State Checker to see which platforms are available in your state right now. Access status can change faster than this page updates.
State restrictions typically block new positions, not fund access. CFTC-regulated platforms must allow withdrawals even under state restrictions. Panic-closing positions in thin markets can cost more than the restriction itself.
CFTC-regulated platforms are required to notify users before any access change. If you don't get an email but see news about your state, log in and check your account — restriction notices typically appear in the app too.
Polymarket operates under a separate regulatory entity (QCX LLC / Polymarket US) and may remain accessible in states where Kalshi is restricted. Access varies and is subject to change. Always verify before trading.
The CFTC sued Arizona, Connecticut, and Illinois in April 2026 asserting CEA preemption of state gambling laws. The Third Circuit also ruled for Kalshi in New Jersey on April 6, 2026, but that win is not a nationwide finish line because other circuits can still disagree. Track developments on the Ban Bills Guide.
Frequently Asked Questions
Related Reading
This page is for informational purposes only and does not constitute legal advice. Legal action dates marked ⚠️ are pending primary-source verification. State access status is dynamic — verify current availability via your platform or the State Checker.