Prediction Markets
in District of Columbia
Prediction markets in the District of Columbia fall under federal CFTC jurisdiction, and as the seat of the federal government DC residents are subject to the same federal framework as any other jurisdiction. No DC-specific enforcement actions against prediction markets have been publicly reported.
Which platforms are available in District of Columbia?
| Platform | Status in DC | Notes |
|---|---|---|
| Kalshi | Available | CFTC-regulated DCM — broadest topic coverage, no deposit minimum |
| Polymarket | Available | US platform via QCEX (CFTC-licensed, Dec 2025 launch — invite-only waitlist, full access est. Q3–Q4 2026) |
| Manifold | Available | Play-money + optional sweepstakes cashout, 5% fee. Available everywhere except DE, ID, MI, WA. |
| PredictIt | Available | Politics-only markets, $850 max per contract. CFTC no-action relief. |
⚠ Platform availability can change. Always verify directly with the platform before depositing funds. Polymarket's QCEX waitlist is currently 6–12 weeks for most states.
Kalshi
CFTC-regulated DCM — broadest topic coverage, no deposit minimum
Polymarket
US platform via QCEX (CFTC-licensed, Dec 2025 launch — invite-only waitlist, full access est. Q3–Q4 2026)
Manifold
Play-money + optional sweepstakes cashout, 5% fee. Available everywhere except DE, ID, MI, WA.
PredictIt
Politics-only markets, $850 max per contract. CFTC no-action relief.
Regulatory environment in District of Columbia
Prediction markets in the District of Columbia fall under federal CFTC jurisdiction, and as the seat of the federal government DC residents are subject to the same federal framework as any other jurisdiction. No DC-specific enforcement actions against prediction markets have been publicly reported.
- Open a Kalshi account at kalshi.com — CFTC-regulated, no issues reported in District of Columbia
- Join the Polymarket QCEX waitlist at polymarket.com — expect 6–12 weeks; full public access est. Q3–Q4 2026
- Manifold Markets is free and available immediately — good for learning without financial risk
- Report event contract profits on your federal return as ordinary income; add District of Columbia state return at up to 10.75%
How District of Columbia taxes prediction market profits
DC taxes event contract profits as ordinary income at rates up to 10.75%.
At the federal level, platforms like Kalshi issue annual 1099-MISC forms reporting net profits as ordinary income. You can deduct up to $3,000 in net losses per year against other income, carrying forward the remainder to future years. If you trade sports event contracts, the One Big Beautiful Bill Act (OBBBA, signed July 4 2025) caps sports betting loss deductibility at 90% starting in 2026.
General information only. Consult a qualified tax professional regarding your specific situation.
Calculate your edge
Expected Value Calculator
Convert any contract price to American odds, decimal odds, and implied probability — then check whether a trade has positive expected value before you place it.
● Kelly calculatorKelly Criterion — Optimal Bet Sizing
Enter your edge and bankroll to find the mathematically optimal stake size. Includes half-Kelly (the practical default) and quarter-Kelly recommendations.
Other states
Alabama
Alabama taxes event contract profits as ordinary income at state rates up to 5%.…
Open · AKAlaska
No state income tax.
Open · ARArkansas
Arkansas taxes event contract profits as ordinary income at state rates up to 4.7%.…
Open · COColorado
Colorado taxes event contract profits as ordinary income at a flat state rate of 4.4%.…