Prediction Markets
by US State
The federal picture has cleared — Kalshi is CFTC-regulated and Polymarket relaunched via QCEX in December 2025. But the state picture is messier: 12 states have active regulatory scrutiny or enforcement actions. Check yours below.
How to read these designations
Federal framework applies
CFTC-regulated platforms (Kalshi, Polymarket QCEX) operate without documented state interference. No enforcement actions reported. Polymarket's QCEX is currently invite-only with a waitlist.
Active regulatory scrutiny
The state has issued cease-and-desist orders, filed civil complaints, or initiated court proceedings targeting prediction market platforms. Kalshi generally still operates; Polymarket QCEX may be blocked.
Known platform restrictions
At least one major platform has explicitly blocked residents due to state law. Manifold restricts real-money features in DE, ID, MI, WA. NJ's DGE restricts sports event contracts.
Browse by state
States requiring extra attention
The following states have documented restrictions or active regulatory actions as of April 2026. Always check directly with the platform before depositing.
Delaware
Delaware is one of four states where Manifold Markets has restricted real-money trading per its terms of service. CFTC-regulated p…
Restricted · IDIdaho
Idaho is one of four states where Manifold Markets has restricted real-money trading per its terms of service. CFTC-regulated plat…
Restricted · MIMichigan
Michigan is one of four states where Manifold Markets restricts real-money trading per its terms of service. Additionally, Michiga…
Restricted · NJNew Jersey
New Jersey's Division of Gaming Enforcement has issued guidance restricting sports event contracts and has remained active followi…
Restricted · WAWashington
Washington is one of four states where Manifold Markets has restricted real-money trading per its terms of service. CFTC-regulated…
Caution · AZArizona
Arizona has active litigation against prediction market platforms following Polymarket's US relaunch via QCEX in December 2025. CF…
Caution · CACalifornia
California's Department of Financial Protection and Innovation (DFPI) has been active in fintech and financial product enforcement…
Caution · CTConnecticut
Connecticut's Department of Consumer Protection issued cease-and-desist orders against Polymarket on the day of its US QCEX launch…
Caution · HIHawaii
Hawaii has one of the most restrictive gambling regimes in the United States: there are no casinos, no state lottery, and broad an…
Caution · ILIllinois
Illinois's Gaming Board has active jurisdiction over gambling-adjacent products, and the state has a history of broad interpretati…
Caution · MDMaryland
Maryland has active court proceedings contesting whether CFTC authorization preempts state gaming and gambling statutes, making it…
Caution · MAMassachusetts
A Massachusetts court issued a preliminary injunction against Polymarket's QCEX platform in early 2026, blocking access for Massac…
Caution · NVNevada
The Nevada Gaming Control Board filed a civil complaint against Polymarket in January 2026, claiming its event contracts constitut…
Gray zone · NYNew York
Polymarket is geoblocked for New York residents on its CFTC-licensed QCEX platform (launched December 2025). The New York Departme…
Caution · OHOhio
Ohio has active court proceedings disputing whether CFTC authorization preempts state gaming laws for event contract platforms. CF…
Caution · TNTennessee
Tennessee issued cease-and-desist orders against Polymarket in January 2026 following its US QCEX launch. A federal judge subseque…
Caution · UTUtah
Utah maintains strict anti-gambling laws with broad statutory prohibitions that could be interpreted to cover prediction market wa…
No state income tax — 8 states
Residents of these states owe no state income tax on event contract profits. Federal tax still applies (up to 37% ordinary income rate).