Legality by state
Prediction markets like Kalshi, Polymarket US and Novig are regulated federally by the CFTC, which is why they operate in almost every state. More than a dozen states disagree, almost always about sports contracts, and the courts are split: the Third Circuit sided with Kalshi against New Jersey in April 2026, the Ninth Circuit sided with Nevada in August 2026, and the Supreme Court has been asked to decide. This table is the picture on October 15, 2026; the pages below have the detail.
At a glance
| State | Kalshi | Polymarket US | Novig | What's going on |
|---|---|---|---|---|
| Arizona | Live; criminal charges blocked by a federal judge | Live; C&D letter (Mar 2026) | Not offered | State filed 20 misdemeanor charges; CFTC and DOJ sued the state |
| California | Live, all markets | Live | Live | Ninth Circuit (Sept 16, 2026): two tribes likely to win IGRA claim for tribal lands; remanded |
| Connecticut | Live | Restricted at times | Live | New C&D orders Sept 10, 2026; platform sued the state Sept 16; CFTC suit |
| Florida | Live, all markets | Live | Live | No action; Seminole exclusivity is the wildcard |
| Illinois | Live | Sports restricted (reported) | Live | Named in CFTC suit |
| Maryland | Live; enforcement paused | Blocked (reported) | Live | Fourth Circuit argued May 7, 2026, undecided; Baltimore suit |
| Massachusetts | Live; injunction stayed since Feb 2026 | Halted | Live | SJC heard appeal in May; no decision |
| Michigan | Sports blocked | Sports restricted | Not offered | Court-ordered shutdown of sports contracts, March 2026 |
| Minnesota | Live | Live | Live | Statutory ban (May 2026) blocked by federal judge; DOJ suit |
| Nevada | Sports, elections, entertainment blocked | Blocked | Not offered | Ninth Circuit ruled for Nevada Aug 28, 2026; rehearing sought |
| New Jersey | Live, all markets | Live | Live | Third Circuit for Kalshi Apr 6, 2026; NJ petitioned Supreme Court Sept 2 |
| New York | Live, all markets | Live (grey area per some trackers) | Live | AG alert; CFTC v. NY (injunction hearing Sept 14, 2026); SDNY class action; ORACLE Act proposed |
| Ohio | Live; $5m fine upheld; Sixth Circuit appeal | Sports restricted (reported) | Live | Federal judge ruled products are gambling (Mar 9, 2026) |
| Rhode Island | Live | Live | Live | AG sued May 21, 2026; CFTC countersued |
| Tennessee | Live; injunction blocks enforcement | C&D (Jan 2026); restricted at times | Live | State appealed to Sixth Circuit |
| Texas | Live, all markets | Live | Live | Legislative study; recommendations 2027 |
| Utah | Live; may geofence if an injunction issues | Live | Live | Kalshi filed pre-emptive suit |
| Washington | Sports, politics, entertainment blocked; economics live | Restricted; emergency relief denied | Check app | Broad state order; geofence from Aug 19, 2026 |
| Wisconsin | Live | Live | Live | AG filed three suits; Ho-Chunk Nation suit; CFTC countersued |
| All other states | Live | Live | Live | No reported action |
"Live" means the platform operates there; "sports blocked" means the platform has geofenced sports contracts after a court order. Polymarket entries marked "reported" come from third-party trackers that disagree with each other; the app's own notice governs. Sources: CBS Sports (Oct 13, 2026), OddsShopper (Oct 15, 2026), Saturday Down South (Oct 1, 2026), court dockets.
How to read this
- Non-sports markets (economics, politics, culture) are unaffected everywhere except Washington and, for elections and entertainment, Nevada.
- Where a platform has geofenced, the fix is a court win, not a VPN. VPN use breaks the terms and in some states is itself illegal.
- The decisive case is New Jersey's Supreme Court petition on whether federal commodities law pre-empts state gambling law. Kalshi's response is due November 9, 2026.