Are Prediction Markets Legal in the US?
Some prediction markets are legal in the US, but legality depends on the platform, the contract type, your location, and the regulatory status of the market. The short version: regulated event-contract exchanges may operate legally, but not every category is automatically legal everywhere.
Regulated exchanges
The CFTC granted KalshiEX designated contract market (DCM) status in 2020, and ForecastEx describes itself as a CFTC-registered DCM and derivatives clearing organization. Operating under federal oversight is what separates these platforms from offshore or unregulated sites.
The picture isn’t fully settled
The legal status of specific market types is still moving. The CFTC has reviewed event contracts touching gaming, sports, elections, war and other sensitive areas, and some state regulators have challenged particular products — sports-related contracts most of all.
Rule of thumb: non-sports event contracts are available in nearly every state to traders 18+, while sports contracts are restricted in a handful of states where litigation is active. Always confirm your state and the platform before depositing.
How to stay on the right side
Stick to CFTC-regulated platforms, check that the specific market is offered where you live, and read each contract’s rules. Our live legality guide keeps the state-by-state picture in one place, and every operator in our reviews notes its regulatory status and availability.