Prediction Markets by State: Where They’re Legal in 2026

Why availability varies

The core of the dispute is a classification question. On a CFTC-designated exchange, a prediction-market contract is a federally regulated event contract — a type of derivative. Several states argue that sports and election contracts are close enough to sports betting to fall under their own gambling laws. Which view wins determines who is in charge, and the courts have not settled it.

The result in mid-2026 is a genuine patchwork. Kalshi says it operates in more than 40 states, yet roughly a dozen states have active enforcement, litigation, or both. In an unusual twist, the CFTC has sued nine states — Arizona, Connecticut, Illinois, New York, New Mexico, Minnesota, Rhode Island, Wisconsin and Kentucky — to stop them enforcing against federally regulated exchanges. Meanwhile individual states have won or lost their own cases: a federal appeals court let Kalshi keep operating in New Jersey, while Nevada and Michigan have forced sports markets to pause. Many observers expect the question to reach the Supreme Court. Our US legality guide explains the framework in full.

How to read the table

We group each state into one of three buckets, based on public reporting as of June 2026:

• Available Available — the platforms generally operate and we are not aware of a specific state block. (32 states here.)
• Contested Contested — active litigation or enforcement, but often still operating while the courts decide. (12 states.)
• Restricted Restricted — a court order or enforcement currently limits access, especially to sports contracts. (6 states.)