Prediction Markets in Arizona

Status in Arizona as of October 3, 2026

Platform	Status	Why (source)	Welcome offer in Arizona
Kalshi	Available, dispute pending	Kalshi accepts Arizona residents under a federal court injunction that protects it; Arizona charged Kalshi criminally in March 2026 and the case is paused by a federal preliminary injunction (May 2026) while it continues; Arizona is in the Ninth Circuit. (source (opens in a new tab))	Valid: Trade $25 and Get $25!
Polymarket US	Available, dispute pending	Polymarket US accepts Arizona residents; Arizona charged Kalshi criminally in March 2026, but a federal preliminary injunction (May 2026) bars the state from proceeding while the case continues. (source (opens in a new tab))	Valid: Deposit $10 get a $25 Trading Bonus!
ProphetX	Available, dispute pending	ProphetX accepts Arizona residents; Arizona charged Kalshi criminally in March 2026, but a federal preliminary injunction (May 2026) bars the state from proceeding while the case continues. (source (opens in a new tab))	Valid: Trade $50, Earn $75!
OG (by Crypto.com)	Not offered	OG says it operates in every state but that some contracts are not available everywhere; Crypto.com said in Dec 2025 that it does not offer sports contracts in Arizona, and the OG welcome offer excludes Arizona. (source (opens in a new tab))	Not valid here
Novig	Not offered	Novig says it is available nationwide except Arizona, Michigan and Nevada, so it does not accept traders physically located in Arizona. (source)	Not valid here
Rebet	Not offered	Rebet is a sweepstakes app, not a CFTC-regulated exchange; its sweepstakes rules exclude Arizona. (source)	Not valid here

What changed (newest first)

• Sep 11, 2026 (federal) — Crypto.com asks Supreme Court to review Ninth Circuit ruling (No. 26-344). Source: Supreme Court of the United States, docket No. 26-344 (opens in a new tab)
• Sep 10, 2026 (federal) — Kalshi seeks Ninth Circuit rehearing; Robinhood petitions Supreme Court. Source: Sports Betting Dime (opens in a new tab)
• Sep 2, 2026 (federal) — New Jersey asks U.S. Supreme Court to review Kalshi preemption ruling. Source: New Jersey Office of the Attorney General (opens in a new tab)
• Aug 28, 2026 (federal) — Ninth Circuit rules for Nevada regulators in Kalshi case. Source: U.S. Court of Appeals for the Ninth Circuit (opinion, No. 25-7516) (opens in a new tab)
• Aug 4, 2026 (federal) — Novig launches as a federally regulated sports prediction market. Source: The Closing Line (opens in a new tab)
• Jul 9, 2026 — Arizona governor bars state employees from insider trading on prediction markets. Gov. Katie Hobbs signed Executive Order 2026-02 prohibiting state employees from using or disclosing nonpublic information to trade on prediction markets. Source: Sports Betting Dime (opens in a new tab)
• May 5, 2026 — Federal judge grants injunction halting Arizona action against Kalshi. U.S. District Judge Michael Liburdi, who had denied Kalshi relief in April, found Kalshi and the CFTC likely to succeed in showing that federal law preempts Arizona gambling laws as applied to event contracts, and granted a preliminary injunction barring the state from proceeding while the case continues. Source: Sports Betting Dime (opens in a new tab)
• Apr 10, 2026 — Federal court temporarily blocks Arizona criminal proceedings against CFTC-regulated exchanges. At the CFTC's request, the U.S. District Court for the District of Arizona granted a temporary restraining order barring Arizona from continuing criminal proceedings against CFTC-regulated exchanges. Source: CFTC press release 9211-26 (opens in a new tab)
• Apr 2, 2026 (federal) — CFTC sues Arizona, Connecticut and Illinois over prediction markets. Source: CFTC press release 9206-26 (opens in a new tab)
• Mar 17, 2026 — Arizona Attorney General announces criminal charges against Kalshi. The Attorney General announced a 20-count misdemeanor complaint in Maricopa County accusing Kalshi of operating an unlicensed gambling business and taking election wagers. Source: NBC News (opens in a new tab)
• Dec 15, 2025 (federal) — Crypto.com says it no longer offers sports contracts in nine states. Source: Sports Betting Dime (opens in a new tab)
• Dec 5, 2025 — Arizona moves to revoke Underdog fantasy license over prediction markets. The Arizona Department of Gaming notified Underdog of its intent to revoke the company's fantasy sports license because of its prediction market offering with Crypto.com. Source: Sports Betting Dime (opens in a new tab)

Arizona's Established Sports Betting Market

Arizona launched a thriving legal mobile sports betting market in September 2021. The state’s framework was established through updated tribal gaming compacts and a new state law that authorized up to 20 online sports betting licenses—10 for an Arizona-based professional sports team/franchise and 10 for a federally recognized tribe. This created a competitive in-state market and made Arizona one of the largest legal sports gambling hubs in the nation.

Major operators like FanDuel, DraftKings, BetMGM, and Caesars quickly went live and have been accepting wagers since. However, the state’s sports betting law includes specific prohibitions, including a ban on wagering on political elections. It was this established legal framework, and the prohibitions within it, that formed the basis of the Arizona Attorney General’s argument that Kalshi was operating outside the law.

What AZ Residents Can Trade Right Now

Arizonans using Kalshi can currently trade on a variety of event contracts. While the platform voluntarily avoids markets directly tied to election outcomes to mitigate regulatory friction, users can still engage with markets related to sports, finance, and culture. For example, a user could trade on whether the Phoenix Suns will make the playoffs, if the Arizona Cardinals will have a winning season, whether the Arizona Diamondbacks will win their next series, or if Arizona State University will reach a certain stage in a collegiate tournament.

Tax Considerations for Arizona Residents

For Arizona residents, any gains from prediction markets are subject to taxation. Winnings are considered income and must be reported on both federal and state tax returns.

Arizona has a flat state income tax rate of 2.5%. Therefore, in addition to any federal taxes owed, gains from trading on platforms like Kalshi would be taxed at this rate by the state. It is advisable for active traders to consult with a tax professional to ensure they are meeting all their obligations.

What could change the status

Dates we are watching: Nevada's responses to the Robinhood and Crypto.com Supreme Court petitions are now due November 13 and 16, 2026 (both extended in October), and Kalshi's response to New Jersey's petition is due November 9, 2026 (deadlines can be extended); the earliest the Supreme Court could act on the petitions is a conference in December 2026 or January 2027 (our estimate, not a scheduled date); the Ninth Circuit has not yet decided Kalshi's request for a rehearing by the full court. We re-check this page when any of these happen and log the change above.

Best Platforms Compared

Prediction markets in other states

• Alaska
• California
• Colorado
• Connecticut
• Florida
• Hawaii
• Illinois
• Kansas
• Maryland
• Massachusetts
• Minnesota
• Nebraska
• New Hampshire
• New Jersey
• New York
• North Dakota
• Oregon
• Pennsylvania
• Rhode Island
• Texas
• Utah
• Vermont
• Virginia
• Washington
• Wyoming
• Alabama
• Arizona
• Arkansas
• Delaware
• Georgia
• Idaho
• Indiana
• Iowa
• Kentucky
• Louisiana
• Maine
• Michigan
• Mississippi
• Missouri
• Montana
• Nevada
• New Mexico
• North Carolina
• Ohio
• Oklahoma
• Puerto Rico
• South Carolina
• South Dakota
• Tennessee
• Washington DC
• West Virginia
• Wisconsin

§ References & Sources

1. Commodity Futures Trading Commission (CFTC) (opens in a new tab)— U.S. federal regulator
2. CFTC Designated Contract Markets list (opens in a new tab)— CFTC
3. 26 U.S. Code § 1256 — Section 1256 contracts marked to market (opens in a new tab)— Cornell Law / U.S. Code
4. IRS Form 6781 — Gains and Losses From Section 1256 Contracts (opens in a new tab)— Internal Revenue Service
5. National Council on Problem Gambling — 1-800-GAMBLER (opens in a new tab)— NCPG

Frequently asked questions

Are prediction markets legal in Arizona?

We don't give legal verdicts, but here is the status as of October 3, 2026: Kalshi, Polymarket US and ProphetX: Available, dispute pending; OG and Novig: not offered in Arizona. Arizona charged Kalshi criminally in March 2026, but a federal preliminary injunction (May 2026) bars the state from proceeding while the case continues. Nationally, federal appeals courts are split on sports event contracts, all at the preliminary-injunction stage, and three Supreme Court petitions are pending; none has been granted.

Can I use Kalshi in Arizona?

Status as of October 3, 2026: Available, dispute pending. Kalshi accepts Arizona residents under a federal court injunction that protects it; Arizona charged Kalshi criminally in March 2026 and the case is paused by a federal preliminary injunction (May 2026) while it continues; Arizona is in the Ninth Circuit. Kalshi's welcome offer (Trade $25 and Get $25!) applies to Arizona residents. Kalshi's minimum age is 18; we recommend 21+.

What has Arizona done about prediction markets?

Arizona charged Kalshi criminally in March 2026, but a federal preliminary injunction (May 2026) bars the state from proceeding while the case continues. Most recent entries in our timeline: Jul 9, 2026: Arizona governor bars state employees from insider trading on prediction markets; May 5, 2026: Federal judge grants injunction halting Arizona action against Kalshi; Apr 10, 2026: Federal court temporarily blocks Arizona criminal proceedings against CFTC-regulated exchanges. Each entry above links to its source.

What could change the status in Arizona?

Dates we are watching: Nevada's responses to the Robinhood and Crypto.com Supreme Court petitions are now due November 13 and 16, 2026 (both extended in October), and Kalshi's response to New Jersey's petition is due November 9, 2026 (deadlines can be extended); the earliest the Supreme Court could act on the petitions is a conference in December 2026 or January 2027 (our estimate, not a scheduled date); the Ninth Circuit has not yet decided Kalshi's request for a rehearing by the full court. We re-check this page when any of these happen and log the change above.