Are prediction markets legal in the US?

There is no single national answer. Sports-event contracts on designated contract markets are in active federal litigation. The Ninth Circuit (Aug 28, 2026) and Sixth Circuit (Sept 25, 2026) declined to treat those contracts as displacing Nevada, Ohio, or Tennessee gambling law. The Third Circuit (Apr 6, 2026) held New Jersey law likely preempted on a preliminary record. This page is orientation, not a ruling on any product.

No. State gaming boards have issued cease-and-desist letters treating some sports-event contracts as unlicensed sports wagering. A 50-state sportsbook map does not decide event-contract status. Read your state board and the circuit that covers it, or ask counsel.

No. A licensed sportsbook is authorized by a state gaming statute, with age, geolocation, and a public operator list. An event contract is listed under commodities rules. Courts disagree whether the Commodity Exchange Act preempts state gambling law for sports-event contracts. Do not treat a CFTC registration as a state sports-wagering licence.

The current text of 17 C.F.R. § 40.11 prohibits a registered entity from listing a contract on an excluded commodity that involves gaming or activity unlawful under state or federal law. The Ninth Circuit and a Third Circuit dissent treat that as a bar. The Third Circuit majority and an Illinois district opinion note the CFTC has not ordered those sports listings off the market. A June 2026 proposal would rewrite the review process; it is not final.

No. This page is education-only: court opinions, CFTC Rule 40.11, and proposed rulemaking. It names no trading venues, links to no apps, and does not say where to trade. Sports-wagering legality is a separate guide built from state-status statuses.

No. It summarizes public court opinions and CFTC documents checked for the source pass (Oct 12, 2026) and this review date. Preliminary injunctions are not final merits judgments. For your own situation, read the opinion, contact your state gaming board, or ask qualified counsel.

They operate nationally under CFTC registration, but several states dispute that for sports contracts and have issued cease-and-desist orders. Legal status for sports contracts is in active litigation in 2026.

No. A sportsbook needs a state licence and follows state rules on age, geolocation and self-exclusion. A prediction market follows CFTC rules for exchanges.

As of our October 13, 2026 check, online sports betting is live in 32 jurisdictions: Arizona, Arkansas, Colorado, Connecticut, Delaware, District of Columbia, Florida, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, Tennessee, Vermont, Virginia, West Virginia, Wyoming. Every other state either has no law, has a law that has not launched yet, or limits play to a physical venue. Check the state regulator before you deposit, because launches and repeals happen mid-year.

We know of no state that has charged an individual user. Enforcement so far targets the platforms. That can change, and this page is not legal advice.