Prediction Markets
in New Jersey
New Jersey's Division of Gaming Enforcement has issued guidance restricting sports event contracts and has remained active following Polymarket's US QCEX launch. CFTC-regulated platforms like Kalshi operate under federal preemption for non-sports contracts, but sports event contracts are explicitly restricted. Polymarket's QCEX platform remains blocked for New Jersey residents due to the DGE's enforcement posture.
Which platforms are available in New Jersey?
| Platform | Status in NJ | Notes |
|---|---|---|
| Kalshi | Available | CFTC-regulated DCM — broadest topic coverage, no deposit minimum |
| Polymarket | Restricted | Blocked: active state enforcement action or geo-restriction in place as of April 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
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 New Jersey
New Jersey's Division of Gaming Enforcement has issued guidance restricting sports event contracts and has remained active following Polymarket's US QCEX launch. CFTC-regulated platforms like Kalshi operate under federal preemption for non-sports contracts, but sports event contracts are explicitly restricted. Polymarket's QCEX platform remains blocked for New Jersey residents due to the DGE's enforcement posture.
- Kalshi (CFTC-regulated) continues to operate in New Jersey under federal preemption
- Manifold Markets is available in New Jersey
- PredictIt (CFTC no-action) is available — politics-only markets, $850 per contract cap
- Verify current platform access directly before depositing — restrictions can change
How New Jersey taxes prediction market profits
New Jersey taxes event contract profits as ordinary income at state 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
Delaware
Delaware taxes event contract profits as ordinary income at state rates up to 6.6%.…
Restricted · IDIdaho
Idaho taxes event contract profits as ordinary income at state rates up to 5.8%.…
Restricted · MIMichigan
Michigan taxes event contract profits as ordinary income at a flat state rate of 4.25%.…
Restricted · WAWashington
Washington has no state personal income tax, so event contract profits are subject only to…