Are Prediction Markets Legal in New York?

Catie Di Stefano

Founder & Editor-in-Chief

The short answer

Updated October 1, 2026. Kalshi, Polymarket's US app, ProphetX, OG and Novig currently accept adult New York residents. Kalshi keeps operating in New York under an August 11, 2026 CFTC emergency order, even though the state has sued it.

Whether New York can apply its gambling laws to these platforms — especially to sports contracts — is being fought in court right now. So the practical answer is "yes, for now", with a real risk that access to some markets changes as the cases move.

Rebet, Sleeper and Chalkboard are travel-only for New Yorkers: they don't operate while you're physically in New York.

The federal layer

Kalshi is a CFTC-registered Designated Contract Market, the same license class as CME. Polymarket returned to the US through a CFTC-regulated exchange and clearing organization and is live for US users. ProphetX is CFTC-licensed, and OG trades through Crypto.com | Derivatives North America, a CFTC-registered exchange.

The platforms' position is that federal commodities law gives the CFTC exclusive authority over these contracts, so state gambling laws don't apply. The CFTC's event contracts page is the primary source for what's federally listed.

Platform-by-platform NY status

Availability can change quickly while the court cases run. Confirm on each platform before signing up.

The state layer

New York regulates sports betting through the NY State Gaming Commission; licensed mobile sportsbooks launched in January 2022. The state's position is that sports event contracts are sports wagers that need a New York license, and that platforms letting under-21s trade break New York law.

That is the core of the state's lawsuits. The platforms answer that the contracts are federally regulated swaps, not state-licensed bets.

Where the cases stand (October 2026)

In New York. In April 2026 the Attorney General sued Coinbase Financial Markets and Gemini, and the CFTC sued New York in federal court in Manhattan, arguing federal law preempts state enforcement. On July 7, U.S. District Judge Analisa Torres denied Kalshi's request for a preliminary injunction, finding New York's gambling laws are not preempted. The state sued Kalshi on July 31; on August 11 the CFTC used its emergency authority to order Kalshi to keep operating. Novig sued New York officials in federal court on August 4. On September 24 the state sued Polymarket US, and Sports Betting Dime reported that Polymarket filed its own suit against New York the same day. In the CFTC's own case against New York, the court denied a temporary restraining order on July 31, and the request for a preliminary injunction has not been decided. Kalshi's appeal of the July 7 ruling is at the Second Circuit (case 26-1835); New York's brief is due October 30, 2026.

In the appeals courts. All three appeals rulings so far are at the preliminary-injunction stage, not final decisions. The Third Circuit (April 6, 2026, New Jersey, 2-1) found Kalshi likely to show that federal law preempts state gambling laws for its sports contracts. The Ninth Circuit (August 28, 2026, Nevada) and the Sixth Circuit (September 25, 2026, Ohio and Tennessee) ruled that Kalshi is unlikely to show federal law blocks those states' gambling laws. New York sits in the Second Circuit, which hasn't ruled. New Jersey asked the Supreme Court on September 2, 2026 to decide the question, and Robinhood (No. 26-338) and Crypto.com (No. 26-344) have filed petitions too. The Court has not said whether it will hear any of them.

Our explainer on the CFTC and New York cases follows each filing.

What we tell New Yorkers

Read the terms. Confirm current availability on the platform itself, not on a third-party page. Keep in mind that sports markets are the ones most at risk of changing in New York while the cases run, and treat anything you put down as money you can lose.

For a starting point, our platforms comparison lists each venue's New York status side-by-side, and our prediction markets vs. sports betting explainer walks through where the two products differ.

Change-log

What changed: New York and federal timeline

Dated events, newest first, each with its source. Where the only source is press, the entry says who reported it. This is a record of events, not legal advice.

1. September 24, 2026 New York

   New York sues Polymarket US in state court

   The Attorney General and the Governor announced a lawsuit against QCX LLC, doing business as Polymarket US, alleging it runs an unlicensed gambling operation. The suit asks for an order stopping it from operating in the state, plus fines, forfeiture of gains and restitution.

   Source: New York State Attorney General

2. September 24, 2026 New York

   Polymarket reported to have filed its own suit against New York

   Sports Betting Dime reported that Polymarket filed a countersuit the same day New York sued it, asking for preliminary and permanent injunctions against enforcement of state gambling laws on its sports event contracts.

   Source: Sports Betting Dime

3. September 14, 2026 New York

   DeFi Rate reports a hearing on the CFTC's request to block New York enforcement

   DeFi Rate reported that a judge in the Southern District of New York heard the CFTC's request for a preliminary injunction against New York officials and appeared skeptical. This is a press report; the request has not been decided.

   Source: DeFi Rate

4. August 12, 2026 New York

   New York City Council opens inquiry into prediction market advertising

   The Council announced an investigation into operators' marketing practices, with a focus on advertising directed at young people.

   Source: Sports Betting Dime

5. August 11, 2026 New York

   CFTC issues emergency order telling Kalshi to keep operating

   After Kalshi told the CFTC that New York's state-court lawsuit had created a market emergency, the agency used its emergency authority to order the exchange to continue operating under federal core principles. The CFTC said the state suit seeks a nationwide restraining order and more than $36 billion.

   Source: CFTC press release 9281-26

6. August 4, 2026 New York

   Novig sues New York

   Novig filed a federal lawsuit against the New York Attorney General and members of the State Gaming Commission, asking for an injunction to prevent the state from enforcing its gambling laws against Novig's sports event contracts.

   Source: Sports Betting Dime

7. July 31, 2026 New York

   New York sues Kalshi in state court

   The Governor and the Attorney General announced a state-court lawsuit alleging Kalshi operates an unlicensed gambling business. It seeks a court order to stop it and to recover fines, illegal gains and restitution for users.

   Source: New York State Attorney General

8. July 27, 2026 New York

   Federal court reported to reject Kalshi's bid for an injunction pending appeal

   CDC Gaming reported that the U.S. District Court for the Southern District of New York rejected Kalshi's emergency request for an injunction while it appeals.

   Source: CDC Gaming

See the full New York and federal change-log

Platforms mentioned

• Kalshi review

  CFTC-regulated event contracts on politics, economics, and culture.

• Polymarket review

  The world's most-watched prediction market — deposit $10 and get a $25 trading bonus.

• ProphetX review

  The sports-first prediction market, now CFTC-licensed nationwide — trade $50, get $75 with code NYPREDICTS.

• OG review

  Crypto.com's prediction-market app: trade $25, get $25 in rewards with code NYPREDICTS. Sports, culture, macro and trending contracts, live in New York.

• Novig review

  Peer-to-peer sports app — trade sports outcomes against other users, not a house line. Available in New York: deposit $10, get $50 in trade credits with code NYPREDICTS.

FAQ

Frequently asked questions

Can I legally trade prediction markets in New York in 2026?

As of October 1, 2026, Kalshi, Polymarket's US app, ProphetX, OG and Novig accept adult New York residents. New York is suing Kalshi and Polymarket and argues their sports contracts need a state license, so availability could change as the cases move. Rebet, Sleeper and Chalkboard don't operate in New York.

Is Kalshi legal in New York?

Kalshi is a CFTC-regulated exchange and still serves New York. The state sued it on July 31, 2026, a federal judge in Manhattan found New York's gambling laws aren't preempted, and the CFTC then ordered Kalshi (August 11) to keep operating. The dispute is unresolved.

Is Polymarket legal in New York?

Polymarket's US app accepts New York residents and runs through a CFTC-regulated exchange. New York sued Polymarket US on September 24, 2026, and trade press reported that Polymarket filed its own suit the same day. Both cases are pending.

Do I need to pay New York state tax on winnings?

Yes — event-contract gains are generally taxable at both the federal and New York state levels. Consult a tax professional for your situation; this page isn't tax advice.

What are the April 2026 lawsuits?

On April 21, 2026 the NY Attorney General sued Coinbase Financial Markets and Gemini, alleging their prediction-market products are illegal gambling. On April 24 the CFTC sued New York in federal court in Manhattan, arguing federal law preempts state enforcement. Both are still pending.

Are pick'em fantasy products the same as prediction markets?

No. Pick'em products (Sleeper, Chalkboard) are fantasy contests under state DFS rules. Prediction markets are CFTC-regulated event contracts. Their legal treatment is different.

Can I use offshore prediction markets from New York?

Offshore, non-CFTC-registered venues fall outside US regulatory protection, and using them from New York carries real legal and financial risk. We don't recommend it.

Is this legal advice?

No. This page is general information for New York readers. Consult a qualified attorney for legal questions specific to your situation.