Are Prediction Markets Legal in New York?
Status as of October 3, 2026: Available, dispute pending. What the courts and the state have done, with dated sources.
Update, October 2, 2026
Parts of this page were written in April 2026. Since then a federal judge in Manhattan denied Kalshi an injunction against New York (July 7, 2026), and New York has sued Kalshi (July 31, 2026) and Polymarket US (September 24, 2026), alleging unlicensed gambling. Both platforms still accept New Yorkers while the cases are pending.
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Quick Verdict: Available, dispute pending
Kalshi, Polymarket US, ProphetX, OG and Novig: Available, dispute pending. New York has sued Kalshi (Jul 31, 2026) and Polymarket US (Sep 24, 2026) in state court after a federal judge ruled on Jul 7, 2026 that state gambling law can apply to sports contracts; no court order blocks the platforms. (source (opens in a new tab))
Nationally: Federal appeals courts are split on sports event contracts, all at the preliminary-injunction stage: the Third Circuit sided with Kalshi (Apr 6, 2026), the Ninth (Aug 28, 2026) and Sixth (Sep 25, 2026) sided with the states, and three Supreme Court petitions (Nos. 26-299, 26-338, 26-344) are pending; none has been granted.
- Status (as of October 3, 2026): Kalshi, Polymarket US, ProphetX, OG and Novig: Available, dispute pending.
- Why: New York has sued Kalshi (Jul 31, 2026) and Polymarket US (Sep 24, 2026) in state court after a federal judge ruled on Jul 7, 2026 that state gambling law can apply to sports contracts; no court order blocks the platforms.
- Welcome offers that apply to New York residents (partner terms of Oct 1, 2026): Kalshi, Polymarket US, ProphetX, OG, Novig. Not valid here: Rebet.
- Age: Kalshi, Polymarket US, OG and Rebet set 18 as the minimum (ProphetX: 18 or the local age of majority if higher); Novig sets 21. We recommend 21+.
- Status describes whether each platform accepts New York residents, not whether trading is legal. We do not give legal advice.
Best offer right now
Kalshi
Score 92/100
Trade $25 and Get $25!
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Code: RANKPREDICTS
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Certain limitations apply. The offer is available to new users only, subject to the terms and conditions at kalshi.com/tc/500. 18+ only. Restrictions and eligibility requirements apply. Event contract trading involves significant risk and is not appropriate for everyone. Please carefully consider if it is appropriate for you in light of your personal financial circumstances. Kalshi products are not available in all jurisdictions. See kalshi.com/regulatory for more information.
Full offer details →New York is the highest-stakes US prediction market state outside California. The state's online sports betting market is the largest in the country (over $20B in handle in 2025), and the New York Attorney General's office under Letitia James has signaled that sports event contracts may fall under state gambling jurisdiction. The Albany Times Union reported in April 2026 that "a legal battle in New York could determine the future of prediction markets like Kalshi, with billions at stake and nationwide implications."
For New York residents in April 2026, this means a split reality similar to Massachusetts: politics, macro, crypto and entertainment markets remain fully available on every CFTC-regulated platform, but sports event contracts are being actively reviewed by AG James and have been voluntarily geofenced by DraftKings Predictions, FanDuel Predicts and Fanatics Markets (whose parent companies hold New York mobile sportsbook licenses they need to protect).
This page tracks the live New York legal status, what every major platform's NY posture is right now, and what to expect over the rest of 2026.
What New York Residents Can Trade Right Now
- Geofenced by DraftKings Predictions, FanDuel Predicts and Fanatics Markets.
Politics is the deepest NY category. New York State elections (gubernatorial, NYC mayoral, congressional) routinely trade more open interest than any other state-political category. NYC mayoral race contracts on Kalshi and Polymarket exceeded $30M in combined volume during 2025.
Best Prediction Market Platforms for New York Residents
Kalshi — still accepts New Yorkers; sued by New York on July 31, 2026 (case pending). The deepest NY-political and macro market. CFTC Designated Contract Market. Currently the most-watched platform for AG James's potential enforcement action.
Polymarket US — Strongest NY-political market depth. Funds in US dollars.
Routes prediction-market volume through Kalshi. Best for existing Robinhood brokerage users.
OG.com — Sports-forward and available in NY for sports event contracts. Lower per-contract fees than Kalshi on high-volume sports markets.
DraftKings Predictions — Not available in NY for sports contracts (DraftKings Sportsbook NY license takes precedence). Non-sports markets also voluntarily geofenced.
FanDuel Predicts — Same as DraftKings — geofenced in NY.
Fanatics Markets — Same as DraftKings — geofenced in NY.
Rebet — Not available in New York.
Novig — Available in NY: deposit $10, get $50 in trade credits with code RANKPREDICTS.
Chalkboard — Not licensed in NY.
Eligibility Checklist for New York Residents
- 18+ on CFTC-regulated platforms (note: NY state-licensed sportsbooks require 21+).
- Government ID + SSN for KYC.
- US bank account or debit card.
- Be aware the regulatory picture is moving: AG James action and S.7888 could change platform availability in 2026.
Tax Treatment for New York Prediction Market Gains
- Federal: taxable, but the IRS↗ (opens in a new tab) hasn't issued guidance on event contracts; tax professionals argue for gambling income, capital gains or Section 1256 (60/40).
- New York state: NY State income tax (up to 10.9%) applies. NYC residents add NYC income tax (up to 3.876%).
Local Sports Angle: Yankees, Mets, Knicks, Rangers
New York fans currently can trade event contracts on the Yankees, Mets, Knicks, Nets, Rangers, Islanders, Devils, Giants, Jets and Bills on Kalshi, Robinhood, Polymarket and OG.com. But this could change quickly if AG James files an enforcement action. Three-of-the-largest US-licensed sportsbooks (DraftKings, FanDuel, Fanatics) already geofence their predictions products from NY, so we may be heading toward a Massachusetts-style sports-only restriction.
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 Second Circuit appeal from the July 7, 2026 New York ruling is still pending; a federal judge in Manhattan has not yet ruled on the CFTC's request for an injunction against New York (DeFi Rate reported a hearing on September 14, 2026). We re-check this page when any of these happen and log the change above.
Bills pending in Albany
Two bills in the New York Legislature would restrict prediction markets. Neither has become law.
- Senate bill S9414 would prohibit event contracts on sports, politics and certain other topics and raise the minimum age to 21. It was reported out of the Senate Racing, Gaming and Wagering Committee and sent to the Finance Committee on May 22, 2026 (Sports Betting Dime (opens in a new tab)).
- Assembly bill A9251 was introduced to prohibit event contracts on single athletic events and several other categories, as trade press reported in November 2025 (Sports Betting Dime (opens in a new tab)).
Sources
- Times Union: How New York could make prediction markets go bust (opens in a new tab)
- The Hill: Kalshi, prediction markets face legal hurdles (opens in a new tab)
- Congress.gov CRS: LSB11406 — Prediction Markets and Insider Trading Law (opens in a new tab)
- NCSL: At least 10 state legislatures have addressed prediction markets
Status in New York as of October 3, 2026
| Platform | Status | Why (source) | Welcome offer in New York |
|---|---|---|---|
| Kalshi | Available, dispute pending | Kalshi accepts New York residents; New York has sued Kalshi (Jul 31, 2026) and Polymarket US (Sep 24, 2026) in state court after a federal judge ruled on Jul 7, 2026 that state gambling law can apply to sports contracts; no court order blocks the platforms. (source (opens in a new tab)) | Valid: Trade $25 and Get $25! |
| Polymarket US | Available, dispute pending | Polymarket US accepts New York residents; New York has sued Kalshi (Jul 31, 2026) and Polymarket US (Sep 24, 2026) in state court after a federal judge ruled on Jul 7, 2026 that state gambling law can apply to sports contracts; no court order blocks the platforms. (source (opens in a new tab)) | Valid: Deposit $10 get a $25 Trading Bonus! |
| ProphetX | Available, dispute pending | ProphetX accepts New York residents; New York has sued Kalshi (Jul 31, 2026) and Polymarket US (Sep 24, 2026) in state court after a federal judge ruled on Jul 7, 2026 that state gambling law can apply to sports contracts; no court order blocks the platforms. (source (opens in a new tab)) | Valid: Trade $50, Earn $75! |
| OG (by Crypto.com) | Available, dispute pending | OG serves New York (New York-specific account pages; welcome offer includes New York); New York has sued Kalshi (Jul 31, 2026) and Polymarket US (Sep 24, 2026) in state court after a federal judge ruled on Jul 7, 2026 that state gambling law can apply to sports contracts; no court order blocks the platforms. (source (opens in a new tab)) | Valid: Trade $25 Get $50 in Rewards! (New users only) |
| Novig | Available, dispute pending | Novig accepts New York residents; New York has sued Kalshi (Jul 31, 2026) and Polymarket US (Sep 24, 2026) in state court after a federal judge ruled on Jul 7, 2026 that state gambling law can apply to sports contracts; no court order blocks the platforms. (source (opens in a new tab)) | Valid: Deposit $10 Get $50 in Trade Credits! |
| Rebet | Not offered | Rebet is a sweepstakes app, not a CFTC-regulated exchange; its sweepstakes rules exclude New York. (source) | Not valid here |
What changed (newest first)
- Sep 24, 2026 — New York sues Polymarket US in state court. The New York Attorney General and Governor announced a lawsuit against QCX LLC, doing business as Polymarket US, alleging it runs an unlicensed gambling operation. Source: New York State Attorney General (opens in a new tab)
- Sep 24, 2026 — Polymarket files its own suit against New York. Trade press reported that Polymarket filed a countersuit on the same day New York sued it, seeking preliminary and permanent injunctions against enforcement of state gambling laws on its sports event contracts. Source: Sports Betting Dime (opens in a new tab)
- Sep 14, 2026 — DeFi Rate reports a hearing on the CFTC's request to block New York enforcement. DeFi Rate reported that a federal judge in the Southern District of New York heard the CFTC's request for a preliminary injunction against New York officials. Source: DeFi Rate (opens in a new tab)
- 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 12, 2026 — New York City Council opens inquiry into prediction market advertising. The New York City Council announced an investigation into prediction market operators' marketing practices, with a focus on advertising directed at young people. Source: Sports Betting Dime (opens in a new tab)
- Aug 11, 2026 — CFTC issues emergency order telling Kalshi to keep operating amid New York suit. After Kalshi notified the CFTC of a market emergency arising from New York's state-court lawsuit, which the CFTC said seeks a nationwide restraining order and more than $36 billion, the agency used its emergency authority to order the exchange to continue operating under federal core principles. Source: CFTC press release 9281-26 (opens in a new tab)
- Aug 4, 2026 — Novig sues New York. Novig filed a federal lawsuit against the New York Attorney General and members of the State Gaming Commission, seeking an injunction to prevent the state from enforcing its gambling laws against Novig's sports event contracts. Source: Sports Betting Dime (opens in a new tab)
- Jul 31, 2026 — New York sues Kalshi in state court. The New York Governor and Attorney General announced a state-court lawsuit alleging Kalshi operates an unlicensed gambling business, seeking a court order to stop it and to recover fines, illegal gains and restitution for users. Source: New York State Attorney General (opens in a new tab)
- Jul 27, 2026 — Federal court rejects Kalshi bid for injunction pending appeal in New York. The U.S. District Court for the Southern District of New York rejected Kalshi's emergency request for an injunction while it appeals, according to trade press. Source: CDC Gaming (brief) (opens in a new tab)
- Jul 7, 2026 — Federal judge denies Kalshi injunction against New York regulators. U.S. District Judge Analisa Torres denied Kalshi's request for a preliminary injunction against the New York State Gaming Commission, finding New York gambling laws are not preempted as applied to Kalshi's sports contracts. Source: Sports Betting Dime (opens in a new tab)
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
- Commodity Futures Trading Commission (CFTC) (opens in a new tab)— U.S. federal regulator
- CFTC Designated Contract Markets list (opens in a new tab)— CFTC
- 26 U.S. Code § 1256 — Section 1256 contracts marked to market (opens in a new tab)— Cornell Law / U.S. Code
- IRS Form 6781 — Gains and Losses From Section 1256 Contracts (opens in a new tab)— Internal Revenue Service
- National Council on Problem Gambling — 1-800-GAMBLER (opens in a new tab)— NCPG
Frequently asked questions
Are prediction markets legal in New York?
We don't give legal verdicts, but here is the status as of October 3, 2026: Kalshi, Polymarket US, ProphetX, OG and Novig: Available, dispute pending. New York has sued Kalshi (Jul 31, 2026) and Polymarket US (Sep 24, 2026) in state court after a federal judge ruled on Jul 7, 2026 that state gambling law can apply to sports contracts; no court order blocks the platforms. 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 New York?
Status as of October 3, 2026: Available, dispute pending. Kalshi accepts New York residents; New York has sued Kalshi (Jul 31, 2026) and Polymarket US (Sep 24, 2026) in state court after a federal judge ruled on Jul 7, 2026 that state gambling law can apply to sports contracts; no court order blocks the platforms. Kalshi's welcome offer (Trade $25 and Get $25!) applies to New York residents. Kalshi's minimum age is 18; we recommend 21+.
What has New York done about prediction markets?
New York has sued Kalshi (Jul 31, 2026) and Polymarket US (Sep 24, 2026) in state court after a federal judge ruled on Jul 7, 2026 that state gambling law can apply to sports contracts; no court order blocks the platforms. Most recent entries in our timeline: Sep 24, 2026: New York sues Polymarket US in state court; Sep 24, 2026: Polymarket files its own suit against New York; Sep 14, 2026: Federal judge hears CFTC request to block New York enforcement. Each entry above links to its source.
What could change the status in New York?
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 Second Circuit appeal from the July 7, 2026 New York ruling is still pending; a federal judge in Manhattan has not yet ruled on the CFTC's request for an injunction against New York (heard September 14, 2026). We re-check this page when any of these happen and log the change above.
21+ · T&Cs apply · Terms
Certain limitations apply. The offer is available to new users only, subject to the terms and conditions at kalshi.com/tc/500. 18+ only. Restrictions and eligibility requirements apply. Event contract trading involves significant risk and is not appropriate for everyone. Please carefully consider if it is appropriate for you in light of your personal financial circumstances. Kalshi products are not available in all jurisdictions. See kalshi.com/regulatory for more information.