Which states allow prediction markets? State-by-state guide (September 2026)
Where you can trade, which states are fighting sports contracts, and where each case stands.
Short answer (checked 27 September 2026): Kalshi and Polymarket US are open in most US states, but Nevada is the big exception, and sports contracts are being fought in court in more than a dozen other states. Courts disagree: one federal appeals court sided with Kalshi (New Jersey), two sided with states (Nevada, Ohio/Tennessee). Rules change quickly, so check the app before you sign up.
On this page
Why does it depend on the state?
Kalshi, Polymarket US, Novig and similar exchanges are regulated by the CFTC, the federal futures regulator. They argue that makes state gambling laws irrelevant. Many states disagree, at least for sports contracts, which they see as unlicensed sports betting. For the background, read are prediction markets legal?
So far the fight is almost entirely about sports (and in a few states, elections). Markets on the economy, weather or the Fed are rarely the target.
State-by-state: where the fights are
This table covers the states with the most important legal action. States not listed have, as far as we can find, no major court case against prediction markets right now, and the main apps generally work there.
| State | What happened | Status (checked 27 September 2026) |
|---|---|---|
| Nevada | Gaming Control Board sued Kalshi and Polymarket. 9th Circuit ruled for Nevada on Aug 28, 2026. | Kalshi agreed to stop operating in Nevada; Polymarket withdrew. Kalshi asked for a full-court rehearing on Sept 9. |
| New Jersey | Sent Kalshi a cease-and-desist in 2025. 3rd Circuit ruled 2-1 for Kalshi on Apr 6, 2026. | Kalshi protected by court order. New Jersey asked the US Supreme Court to hear the case (Sept 2026). |
| Ohio | Casino Control Commission moved against Kalshi. 6th Circuit ruled for Ohio on Sept 25, 2026. | State can now enforce its gambling law; sports contracts may be switched off. Check the app. |
| Tennessee | Sports Wagering Council sent cease-and-desist letters. Same 6th Circuit ruling on Sept 25. | Earlier order protecting Kalshi was thrown out. Check the app. |
| Massachusetts | Attorney General sued Kalshi; a judge ordered it to stop sports contracts (Jan 2026). | Order is on hold while the state's top court decides. Sports still live for now. |
| Maryland | State said sports contracts are unlicensed bets; a lower court sided with Maryland. | Appeal argued at the 4th Circuit in May 2026; no ruling yet. |
| Michigan | Attorney General sued Kalshi; a temporary order in June was followed by a preliminary injunction on Sept 2, 2026. | Kalshi sports contracts blocked. |
| Washington | Attorney General sued Kalshi; a King County judge ruled for the state (Aug 13, 2026). | Kalshi must block sports, election and culture markets; economics and weather allowed. |
| Utah | Federal judge ruled Utah can enforce its gambling law against Kalshi (Aug 2026). | Kalshi said it will appeal. Check the app. |
| Connecticut | Cease-and-desist (Dec 2025), then a state lawsuit (Aug 2026). Kalshi lost its bid for a federal injunction. | Kalshi appealing to the 2nd Circuit. Check the app. |
| New York | Attorney General sued Kalshi (July 31) and Polymarket US (Sept 24, 2026). | Both companies are fighting back in federal court. Still live for now. |
| Arizona | State filed criminal charges against Kalshi (March 2026). | A federal judge blocked the prosecution at the CFTC's request. |
| Minnesota | First state to pass a law banning prediction markets (May 2026). | A federal judge blocked the ban before it took effect. |
| Montana | Kalshi sued the state; the case was dismissed by agreement (Sept 2026). | Kalshi still operating; the state must give 30 days' notice before enforcing. |
Other states, including Illinois, Wisconsin, Kentucky, New Mexico and Rhode Island, are also in court or under legal pressure, often with the CFTC suing the state in return. Some cases also involve Robinhood, Coinbase or Crypto.com.
Where each app is available
| App | Type | Where (checked 27 September 2026) |
|---|---|---|
| Kalshi | CFTC-regulated exchange | Most states. Not Nevada. Sports blocked or restricted in some states (see above). |
| Polymarket US | CFTC-regulated exchange | Most states. Not Nevada. Check the app for sports. |
| Novig | CFTC-regulated exchange since August 2026 | Launched in 47 states; reported as unavailable in Arizona, Nevada and Michigan at launch. |
| Rebet | Sweepstakes sports app | Selected states. Excludes a number of states, including California, Nevada and Michigan. |
A note on Novig: it used to run a sweepstakes (coins) model. On August 4, 2026 it relaunched as a CFTC-regulated sports exchange through its Ludlow Exchange (CNBC). Sweepstakes apps like Rebet follow a different set of state rules, and several states have moved against sweepstakes models in general.
What the court fights mean for you
- Location matters, not your home address. Apps check where you physically are. Cross into Nevada and your Kalshi app won't let you trade.
- Sports go first. When a state wins, the usual result is that sports contracts are switched off. Economics and weather markets tend to stay.
- Open positions are usually wound down, not frozen. In Washington, for example, the court let users close existing positions in blocked categories.
- It may end at the Supreme Court. With appeals courts split, both New Jersey and Robinhood have asked the US Supreme Court to take up the issue. Nothing is decided yet.
Sources and dates
- Nevada: Kalshi agreed to stop operating in the state, July 28, 2026 (KOLO); 9th Circuit ruling Aug 28 and rehearing request (Covers); Polymarket order (Decrypt)
- New Jersey: 3rd Circuit ruling (Courthouse News); Supreme Court petition, Sept 2, 2026 (NJ Attorney General)
- Ohio and Tennessee: 6th Circuit, Sept 25, 2026 (CoinDesk)
- Massachusetts: injunction (Mass. Attorney General); stay pending appeal (Bloomberg Law)
- Maryland: 4th Circuit appeal (Bloomberg Law)
- Michigan: injunction (Michigan Advance)
- Washington: court order (Washington Attorney General)
- Utah: ruling (Utah Attorney General)
- Connecticut: lawsuit (Connecticut Attorney General)
- New York: Kalshi suit (NY Attorney General); Polymarket suit (CNBC)
- Arizona: prosecution paused (Courthouse News)
- Minnesota: ban blocked (MPR News)
- Montana: dismissal (InGame)
This page is general information, not legal advice. We update it as rulings come in.
Frequently asked questions
Which state has banned prediction markets?
Minnesota passed a ban in May 2026, but a federal judge blocked it before it took effect. Nevada has not passed a ban, but court orders mean Kalshi and Polymarket don't operate there.
Can I use Kalshi in Ohio?
The 6th Circuit ruled on September 25, 2026 that Ohio can enforce its gambling law against Kalshi's sports contracts. Non-sports markets are not the focus of the case. Open the app in Ohio to see what's currently available.
Can I use prediction markets in California?
Yes, Kalshi and Polymarket US are generally available in California. Sweepstakes apps such as Rebet are not. Check the app for current details.
What happens if my state wins its case?
Usually the app blocks the contested markets (typically sports) for users located in that state, and lets you close or settle existing positions. Your account and other markets normally stay open.
Will the Supreme Court decide this?
Possibly. New Jersey filed a petition on September 2, 2026 and the Court docketed it as No. 26-299. It hasn't yet said whether it will hear the case.
