Prediction Markets in Puerto Rico

Quick Verdict: US Territory, Full Federal Reach, Legal Sportsbooks

Puerto Rico is an unincorporated US territory with approximately 3.2 million residents. As a US territory, PR falls within the jurisdictional reach of federal agencies including the Commodity Futures Trading Commission↗ (CFTC), and the Commodity Exchange Act↗ applies to PR. This means CFTC-regulated designated contract markets (DCMs) — Kalshi, Robinhood, DraftKings Predictions, FanDuel Predicts, Polymarket US, and Fanatics Markets — are accessible to PR residents 18+ on the same federal-jurisdiction basis as the 50 states.

On the gambling side, Puerto Rico legalized sports betting under Act 81-2019 (signed by Governor Wanda Vázquez in July 2019), creating a regulated framework administered by the Puerto Rico Gaming Commission (Comisión de Juegos). Retail sportsbooks operate at PR casinos and racetracks. Mobile sports betting launched in 2022 with Caesars (the first PR mobile sportsbook), followed by FanDuel and DraftKings in 2023-2024. The PR Gaming Commission has not pursued enforcement actions against CFTC-regulated DCMs.

Puerto Rico's Sports Betting Framework

Act 81-2019 authorized the Puerto Rico Gaming Commission to license sports wagering at retail casino venues and via mobile platforms. Retail sportsbooks operate at properties including the Sheraton Puerto Rico Hotel & Casino, Embassy Suites Dorado del Mar, and Casino del Mar at La Concha Resort, among others.

Mobile sports betting launched in 2022 with Caesars Sportsbook PR. FanDuel and DraftKings followed in subsequent years. As of 2026, three major mobile sportsbook brands operate in PR. The PR Gaming Commission imposes a 7% tax on gross gaming revenue from sports betting, with revenue directed to the Puerto Rico General Fund and to specific economic development priorities.

The PR Gaming Commission's enforcement focus has been on offshore unlicensed sportsbooks rather than on federally regulated DCMs. PR has not joined any state-AG coalition against CFTC authority (PR does not have a state attorney general in the 50-state sense — the PR Department of Justice operates under different statutory authority).

CFTC Jurisdiction in US Territories

The Commodity Exchange Act↗ and CFTC regulations apply to US territories including Puerto Rico, the US Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa. CFTC-regulated DCMs offering federally regulated event contracts therefore have federal-law authority to serve residents of these territories on the same basis as the 50 states.

For Puerto Rico specifically, this means Kalshi, Robinhood, DraftKings Predictions, FanDuel Predicts, Polymarket US, and Fanatics Markets all have federal-law authority to operate. PR residents can register accounts using PR addresses and PR-issued government identification. KYC requirements are the same federal SSN/ITIN-based standards as US-state residents (PR residents have either SSNs or ITINs depending on individual circumstances).

What Puerto Rico Residents Can Trade in 2026

Full federal prediction market catalog is accessible to PR residents 18+:

• MLB contracts — Major League Baseball is the dominant sport in Puerto Rico. PR has produced numerous MLB stars (Roberto Clemente, Roberto Alomar, Iván Rodríguez, Yadier Molina, Carlos Beltrán, Francisco Lindor, Carlos Correa, José Berríos, etc.). PR-resident engagement on MLB contracts is among the highest per capita of any US jurisdiction
• NBA contracts — strong engagement on Puerto Rican NBA players (José Alvarado, etc.)
• NFL contracts — full league coverage; cross-cultural NFL engagement is meaningful in PR
• Boxing and combat sports — PR has a deep boxing tradition (Tito Trinidad, Miguel Cotto, Wilfred Benítez); boxing-related event contracts when offered see strong PR engagement
• Politics — Puerto Rico statehood/status referendum contracts when offered are uniquely relevant to PR residents. PR residents do not vote in US presidential general elections (though they do participate in primaries) but participate in PR-specific gubernatorial and legislative contests
• Economic data, crypto, culture, weather — full catalog

Best Platforms for Puerto Rico Residents

Kalshi is our top pick for Puerto Rico based on liquidity and contract breadth. PR-resident accounts function fully with no territory-specific restrictions.

Polymarket US offers strong politics and crypto liquidity. Useful for PR residents who want exposure to PR-specific political contracts (statehood/status, gubernatorial races) when those markets are offered.

Robinhood provides Kalshi-routed contracts inside the familiar Robinhood app.

DraftKings Predictions and FanDuel Predicts are interesting in PR because both companies also operate licensed PR mobile sportsbooks. Users can keep sportsbook accounts for traditional bets and Predictions accounts for combo contracts and longer-dated futures with the same KYC.

Fanatics Markets rounds out the options with a sports-first interface available territory-wide.

How PR Compares to Other US Jurisdictions

Puerto Rico's regulatory posture is among the most permissive in the United States and territories:

• vs Florida: FL has tribal-only mobile sports betting (Hard Rock Bet via Seminole Tribe). PR has multi-operator competitive mobile sports betting. Both have full federal prediction market access.
• vs Texas: TX has no legal sports betting and active AG opposition to DCMs. PR has both legal sports betting and stable DCM access.
• vs Washington DC: similar posture — both have legal mobile sports betting and stable DCM access. DC has FanDuel-exclusive mobile; PR has multi-operator mobile.

For PR residents, the practical takeaway is that PR offers one of the cleanest combinations of legal sports betting plus stable federal prediction market access in any US jurisdiction.

Tax Considerations for Puerto Rico Residents

Puerto Rico has its own tax system separate from the US federal income tax for most residents. Bona fide PR residents are generally exempt from US federal income tax on PR-source income under IRC Section 933, but income from US-mainland sources (including most prediction market trading gains) may still be subject to US federal taxation.

The tax treatment of prediction market gains for PR residents is genuinely complex and depends on factors including (1) bona fide residency status under IRC Section 937, (2) the source of the income (whether the trading platform is treated as a US-mainland source), (3) any applicable PR Department of Treasury (Hacienda) tax treatment, and (4) any applicable PR Act 60 (Individual Investors Act) elections.

PR residents should consult a tax professional familiar with US-PR tax interaction before assuming any specific treatment. Platforms typically issue 1099 forms based on the address on file. PR-resident traders with significant volume should obtain tax advice specific to their bona fide residency status.

Outlook: Stable Federal-Plus-Territory Coexistence

Puerto Rico's regulatory posture is stable. The PR Gaming Commission has not signaled any interest in challenging CFTC-regulated DCMs, and PR is not party to any of the federal preemption litigation working its way through the US circuit courts. Federal preemption is even less of an open question in PR than in some US states because PR's gaming framework explicitly does not claim authority over federally regulated derivatives products.

For PR residents, prediction markets are accessible, legally settled, and complement the territory's licensed mobile sports betting framework. Combined with PR's deep MLB engagement and unique political-contract relevance (statehood/status), the territory is one of the more interesting prediction-market jurisdictions per capita in the broader US system in 2026.