Why Prediction Markets Are Available in More States Than Sportsbooks
Traditional sports betting requires a state-level gambling license in every state where it operates. This is why sports betting remains illegal in California, Texas, Florida, and many other large states — the state legislature has not passed enabling legislation.
Prediction markets like Kalshi operate under a federal CFTC license as financial derivatives — the same regulatory framework as the Chicago Mercantile Exchange. This means they can legally operate nationwide without state-by-state approval. California and Texas residents can trade on Kalshi today, even though neither state has legal sports betting.
However, a handful of states disagree with this interpretation and are actively challenging Kalshi in court, arguing its sports contracts constitute sports betting under state law.
States Where Sports Markets Are Currently Blocked
Important: Only sports event contracts are blocked in these states. Kalshi's political, economic, weather, and crypto markets remain available in all 50 states. The restrictions below apply to sports prediction markets only.
Arizona issued a cease-and-desist in early 2025. Kalshi is contesting in federal court. Non-sports markets available.
Illinois Gaming Board issued cease-and-desist. Same state that blocked sweepstakes casinos in early 2026. Active litigation ongoing.
Massachusetts
Sports blocked + injunction
Massachusetts sued Kalshi in September 2025. A Superior Court judge issued an injunction in January 2026 requiring geofencing. Most aggressive state challenger.
Maryland federal court ruled against Kalshi — the only major court loss to date. Appeals process ongoing. Maryland was an early cease-and-desist issuer.
Michigan issued a cease-and-desist. Home to major tribal gaming interests that have filed separate federal lawsuits against Kalshi.
Montana operates a state-run gambling monopoly and takes a strict stance on all sports wagering products.
Nevada
Sports blocked (Kalshi won in court)
Nevada issued a cease-and-desist but a federal court ruled in Kalshi's favour in 2025 — a major legal win. However sports markets remain blocked pending appeals. The home of US sports betting is Kalshi's most symbolic legal battleground.
Ohio
Sports blocked — CFTC defending Kalshi
Ohio issued a $5M civil penalty threat. The CFTC filed an amicus brief in the 6th Circuit Court of Appeals supporting Kalshi — a strong signal of federal support under the Trump administration.
Full 50-State Availability Guide
Full access (all markets)
Partial (non-sports only)
Massachusetts
✗ Sports blocked + injunction
Nevada
⚠ Sports blocked (Kalshi won in court)
New Hampshire
✓ Full access
New Jersey
✓ Full access (Kalshi won in court)
North Carolina
✓ Full access
North Dakota
✓ Full access
Ohio
⚠ Sports blocked — CFTC supporting Kalshi
Pennsylvania
✓ Full access
Rhode Island
✓ Full access
South Carolina
✓ Full access
South Dakota
✓ Full access
West Virginia
✓ Full access
⚠ State availability changes frequently as legal proceedings evolve. Always verify current availability directly on Kalshi.com or Polymarket.com before signing up. Last updated May 2026.
Prediction Markets by State FAQ
Is Kalshi legal in my state? +
Kalshi is available in 42+ US states. Sports event contracts are currently blocked in AZ, IL, MA, MD, MI, MT, NV, and OH due to state-level legal challenges. Non-sports markets — including politics, economics, weather, and crypto — remain available in all 50 states. Always verify current availability on Kalshi.com.
Can I use Kalshi in California or Texas? +
Yes. Both California and Texas have full access to Kalshi — including sports markets. Neither state has challenged Kalshi's federal CFTC status. This is one of the key advantages of prediction markets over traditional sportsbooks, which remain illegal in both states.
Why is Kalshi blocked in some states but not others? +
Some states with established sports betting industries — particularly Nevada, which has the most to lose — argue that Kalshi's sports event contracts are sports wagering under state law rather than federally regulated derivatives. Kalshi argues its CFTC license preempts state gambling laws. Courts have sided with Kalshi in Nevada and New Jersey, but Maryland ruled against it. The issue is being litigated across multiple federal circuits simultaneously.
Is Polymarket legal in the same states as Kalshi? +
Yes. Polymarket US follows the same state restrictions as Kalshi — blocked in AZ, IL, MA, MD, MI, MT, NV, and OH for sports markets. This is because both platforms operate under CFTC jurisdiction and face the same state-level legal challenges.
Will prediction markets become available in all states? +
The trend is toward expansion. Kalshi has won federal court rulings in Nevada and New Jersey, and the Trump-era CFTC is actively supporting Kalshi's position in court. Most legal experts expect prediction markets to be available in all or nearly all US states within 2–3 years as federal preemption is established through the court system.
Can I sign up for Kalshi from a blocked state? +
Yes. Kalshi uses geofencing to block sports trades — not account creation. You can sign up, complete KYC verification, and fund your account from any US state. You simply cannot place sports event contract trades while physically located in a blocked state. Non-sports markets remain fully accessible.