Prediction Market Legality by State
Prediction market legality varies by state and by contract type. Minnesota criminalizes the activity as of August 1, 2026. Federal courts have blocked New Jersey and Tennessee from enforcing their gambling laws against Kalshi's sports contracts, while Ohio's laws remain enforceable. Most orders in force reach sports contracts only.
Every state’s current legal posture toward prediction markets and event contracts, with the instrument that produces it. Each page names the order, statute or enforcement action in force, says exactly what it covers, and carries the date its facts were last checked against primary sources.
| State | Status | Instrument in force | What it reaches |
|---|---|---|---|
| Minnesota | CRIMINALIZED | Minn. Stat. § 609.7615, effective Aug. 1, 2026 | Operating, facilitating and advertising |
| New Jersey | ENJOINED | D.N.J. order, affirmed 172 F.4th 220 (3d Cir. 2026) | State barred as to Kalshi sports contracts |
| Ohio | CONTESTED | ORC ch. 3775; injunction denied Mar. 9, 2026 | State laws enforceable, nothing enjoined |
| Tennessee | ENJOINED | M.D. Tenn. injunction, Feb. 19, 2026 | State officials barred as to Kalshi sports contracts |
How to read the status values
A legal-or-illegal binary is wrong for this category, because most orders in force reach sports contracts specifically and leave every other market trading normally. Six values carry the real shape.
- Clear. No state action, no pending litigation, no announced enforcement posture.
- Watch. Legislative activity, a regulator inquiry or an announced review, but nothing operative.
- Contested. Active litigation or an enforcement action, with no order currently restricting trading.
- Enjoined. A court order barring the state from enforcing against a named operator.
- Blocked. An order in force reaching event contracts broadly.
- Criminalized. A statute imposing criminal liability, in force or with a fixed effective date.
An injunction against a state protects the operator that won it and does not settle the law for anyone else. A denial of an injunction is not an injunction in the other direction, and it leaves the state free to enforce.
Coverage
State pages publish as their records are verified against primary sources. The four above carry the fastest-moving legal status in the country right now, and each is re-checked on a three-day cycle.
Questions
Which states have criminalized prediction markets?
Minnesota is the only state with a criminal statute specific to prediction markets. Minn. Stat. § 609.7615 takes effect August 1, 2026 and makes operating, facilitating or advertising a prediction market a felony. It does not reach traders.
Does an injunction against a state mean prediction markets are legal there?
No. An injunction bars the state from enforcing against the operator that won it. It protects that company specifically, leaves the state's laws on the books, and does not settle the question for other operators.
Do these orders cover all contract types?
Most do not. The orders in force in New Jersey and Tennessee reach sports-related event contracts, which were the only contracts those states targeted. Weather, economic, election and Federal Reserve markets were never at issue in either state.