Prediction Markets
in New Mexico
New Mexico became the eighth state in active federal preemption litigation in June 2026. AG Raúl Torrez sued Kalshi, alleging its sports event contracts are unlicensed online sports betting; the CFTC counter-sued the state on June 12 to defend its exclusive jurisdiction. The case has a local twist: New Mexico permits sports betting only at tribal casinos under state-tribal compacts, with no statewide mobile framework, so the tribal-sovereignty interest is in play here in a way it is not in the other seven state cases. All platforms remain accessible to NM residents while the litigation proceeds. The state's top income tax is 5.9%.
AG Torrez sued Kalshi. The CFTC sued New Mexico back — the eighth state.
AG Raúl Torrez sued Kalshi in early June over its sports event contracts, arguing New Mexico permits sports betting only under tribal-state compacts and that "Kalshi has ignored that framework entirely." The CFTC counter-sued the state June 12, citing the Arizona preliminary injunction and its newly released proposed rule supporting sports event contracts. Chairman Selig called New Mexico "the latest state seeking to nullify black letter law." The tribal-compact dimension could draw New Mexico's gaming tribes into the case as interested parties.
Read full coverage → Litigation scoreboard →Which platforms work in New Mexico?
Accessible in New Mexico, but AG Raúl Torrez sued Kalshi in early June 2026, alleging its sports event contracts are unlicensed online sports betting. The CFTC counter-sued the state June 12. No service interruption pending the litigation.
Polymarket QCEX available in New Mexico. Not named in the Torrez suit, which targets Kalshi specifically.
Both Mana and Sweepcash available in New Mexico.
CFTC no-action letter. US politics only, $850 cap. Available in NM.
Prediction market contracts accessible in NM. Sports contracts route through Kalshi, so indirectly exposed if the state prevails against Kalshi.
New Mexico in the Southwest
Texas
No state income tax, open status, no legal sports betting. Major tax advantage over NM.
CautionArizona
Caution: Polymarket restricted. Sports betting fully legal since 2021. NM has better platform access; AZ has sports betting.
Neighbor stateColorado
Open status, sports betting legal since 2020. 4.4% flat rate: lower than New Mexico's 5.9%.