Are Prediction Markets Legal in Texas?
Status as of October 3, 2026: Available. What the courts and the state have done, with dated sources.
Quick Verdict: Available
Kalshi, Polymarket US, ProphetX, OG and Novig: Available. No Texas enforcement action was found; a Senate committee held a hearing on Sep 15, 2026 and the Legislature next meets in January 2027. (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.
- Why: No Texas enforcement action was found; a Senate committee held a hearing on Sep 15, 2026 and the Legislature next meets in January 2027.
- Welcome offers that apply to Texas residents (partner terms of Oct 1, 2026): Kalshi, Polymarket US, ProphetX, OG, Novig, 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 Texas 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!
Trade $25 in event contracts and get $25 in credit. Use code RANKPREDICTS at signup.
Code: RANKPREDICTS
Claim $25 credit (opens in a new tab)21+ · Terms apply · Verified Sep 2
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 →Yes. Prediction markets are legal in Texas in 2026. While traditional online sports betting remains illegal in the Lone Star State, CFTC-regulated prediction market platforms including Kalshi, Robinhood, DraftKings Predictions, FanDuel Predicts, and Fanatics Markets are all available to Texas residents.
The reason prediction markets are legal in Texas while sports betting is not comes down to regulatory classification. Traditional sports betting is regulated state-by-state under gambling laws, and Texas has not passed legislation to legalize it. Prediction markets are classified differently: under federal law, they are financial derivatives regulated by the Commodity Futures Trading Commission↗ (opens in a new tab) (CFTC), the same agency that oversees futures trading on the Chicago Mercantile Exchange. Federal law preempts state gambling regulations for CFTC-licensed exchanges.
What Texas Residents Can Trade
Texas users have access to the full range of prediction market categories on most platforms:
Sports: NFL, NBA, MLB, NHL game outcomes, spreads, totals, and player props. All major prediction market platforms offer sports contracts to Texas residents.
Politics: US election markets, congressional approval, and policy outcome contracts.
Macroeconomics: Federal Reserve rate decisions, CPI, GDP, and economic data contracts.
Crypto: Bitcoin and Ethereum price milestones, ETF outcomes.
Entertainment: Award show outcomes, pop culture contracts.
Best Prediction Market Platforms for Texas
Kalshi — Available to all Texas residents. Full market catalog including sports. $10 minimum deposit. CFTC Designated Contract Market.
Zero commission. No new account needed for existing Robinhood users. NFL, NBA, and macro markets.
DraftKings Predictions — Available in Texas (sports betting not legal in Texas, so DK Predictions offers full sports contract coverage). 100% first trade match up to $25.
OG.com — Available in Texas. Sports-forward platform with low per-contract fees.
Status in Texas as of October 3, 2026
| Platform | Status | Why (source) | Welcome offer in Texas |
|---|---|---|---|
| Kalshi | Available | Kalshi accepts Texas residents; no Texas enforcement action was found; a Senate committee held a hearing on Sep 15, 2026 and the Legislature next meets in January 2027. (source (opens in a new tab)) | Valid: Trade $25 and Get $25! |
| Polymarket US | Available | Polymarket US accepts Texas residents; no Texas enforcement action was found; a Senate committee held a hearing on Sep 15, 2026 and the Legislature next meets in January 2027. (source (opens in a new tab)) | Valid: Deposit $10 get a $25 Trading Bonus! |
| ProphetX | Available | ProphetX accepts Texas residents; no Texas enforcement action was found; a Senate committee held a hearing on Sep 15, 2026 and the Legislature next meets in January 2027. (source (opens in a new tab)) | Valid: Trade $50, Earn $75! |
| OG (by Crypto.com) | Available | OG accepts Texas residents; no Texas enforcement action was found; a Senate committee held a hearing on Sep 15, 2026 and the Legislature next meets in January 2027. (source (opens in a new tab)) | Valid: Trade $25 Get $50 in Rewards! (New users only) |
| Novig | Available | Novig accepts Texas residents; no Texas enforcement action was found; a Senate committee held a hearing on Sep 15, 2026 and the Legislature next meets in January 2027. (source (opens in a new tab)) | Valid: Deposit $10 Get $50 in Trade Credits! |
| Rebet | Available | Rebet is a sweepstakes app, not a CFTC-regulated exchange; its sweepstakes rules include Texas. (source (opens in a new tab)) | Valid: Get a 100% purchase match up to $100! |
What changed (newest first)
- Sep 15, 2026 — Texas Senate committee holds hearing on prediction markets. The Senate Committee on State Affairs heard testimony on prediction markets, including recommendations that Texas sue operators in state court or clarify that sports event contracts are illegal gambling. Source: Covers (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 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)
- Apr 6, 2026 (federal) — Third Circuit sides with Kalshi against New Jersey regulators. Source: U.S. Court of Appeals for the Third Circuit (opinion, No. 25-1922) (opens in a new tab)
- Mar 30, 2026 — Texas not among state attorneys general on brief opposing prediction markets. Event Horizon reported that Texas had not joined the 39 state attorneys general who filed a federal-court brief arguing that federal law does not preempt state gambling laws. Source: Event Horizon (opens in a new tab)
- Mar 27, 2026 — Texas Lt. Gov. Patrick directs Senate to study prediction markets. Lt. Source: The Texas Tribune (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 Texas?
We don't give legal verdicts, but here is the status as of October 3, 2026: Kalshi, Polymarket US, ProphetX, OG and Novig: Available. No Texas enforcement action was found; a Senate committee held a hearing on Sep 15, 2026 and the Legislature next meets in January 2027. 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 Texas?
Status as of October 3, 2026: Available. Kalshi accepts Texas residents; no Texas enforcement action was found; a Senate committee held a hearing on Sep 15, 2026 and the Legislature next meets in January 2027. Kalshi's welcome offer (Trade $25 and Get $25!) applies to Texas residents. Kalshi's minimum age is 18; we recommend 21+.
What has Texas done about prediction markets?
No Texas enforcement action was found; a Senate committee held a hearing on Sep 15, 2026 and the Legislature next meets in January 2027. Most recent entries in our timeline: Sep 15, 2026: Texas Senate committee holds hearing on prediction markets; Mar 30, 2026: Texas not among state attorneys general on brief opposing prediction markets; Mar 27, 2026: Texas Lt. Gov. Patrick directs Senate to study prediction markets. Each entry above links to its source.
What could change the status in Texas?
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 Texas Legislature next meets on January 12, 2027, after a Senate committee hearing on September 15, 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.