Where can you trade sports prediction markets?
Novig says it is available in every state except Arizona, Nevada and Michigan, for users 21 and older. Kalshi requires users to be 18, and which states can trade its sports contracts is being decided state by state in court.
Key takeaways
- Both exchanges are federally regulated by the CFTC, which is why they reach states without legal sportsbooks.
- Novig: every state except Arizona, Nevada and Michigan, 21+, checked by your device's location.
- Kalshi: 18+. Courts have split: the Third Circuit sided with Kalshi in New Jersey; the Ninth and Sixth Circuits sided with Nevada, Ohio and Tennessee.
- Rules change quickly. The exchange's app checks your location before every trade.
Sports prediction markets reach far more states than sportsbooks do, because they are regulated federally instead of state by state. That is also why their reach is contested. This guide sets out what each exchange says and where the courts stand as of October 23, 2026.
Why can prediction markets operate where sportsbooks can't?
Kalshi and 
Novig are designated contract markets regulated by the Commodity Futures Trading Commission (CFTC), the federal agency that oversees futures exchanges. They argue their event contracts fall under federal commodities law, which would override state gambling laws. Many states argue the opposite: that sports contracts are sports betting and need a state license.
- Kalshi was designated a contract market in November 2020.
- Novig (Ludlow Exchange, LLC) was designated on June 16, 2026, and launched its regulated exchange nationwide on August 4, 2026.
Where is Novig available?
Novig says it is available nationwide except Arizona, Nevada and Michigan. Eligibility depends on where you physically are, checked by your device's location each time you trade, not where you live. You must be 21 or older, and Novig verifies your name, date of birth and address, and sometimes the last four digits of your Social Security number and a photo ID.
Novig has also gone to court pre-emptively. Since August 2026 it has filed federal lawsuits against several states, including New York, New Mexico, Massachusetts, Washington and Wisconsin, and sued Missouri in October after cease-and-desist letters from its attorney general.
Where is Kalshi available?
Kalshi requires users to be 18 or older and to pass identity verification. Its sports contracts are the subject of lawsuits in many states, and recent rulings point in different directions:
| Court or state | What happened | Date |
|---|---|---|
| Third Circuit (New Jersey) | Upheld an injunction stopping New Jersey from enforcing its gambling law against Kalshi | April 6, 2026 |
| Ninth Circuit (Nevada) | Held that sports contracts are not swaps, so Nevada may enforce its law | August 28, 2026 |
| Michigan | A state court injunction barred Kalshi sports contracts, including parlays and props | September 1, 2026 |
| Sixth Circuit (Ohio, Tennessee) | Ruled 3–0 against Kalshi | September 25, 2026 |
| Utah | The attorney general sued in state court to stop Kalshi sports contracts | October 20, 2026 |
Because federal appeals courts have split, the question may reach the Supreme Court. Until it is settled, which states can trade Kalshi sports contracts can change with each ruling. Check the Kalshi app from where you are.
Can you trade while traveling?
Eligibility follows where you are, not where you live. Novig checks your device's location each time you open the app to trade, so you can trade from any eligible state and can't from Arizona, Nevada or Michigan, even if you live elsewhere. Don't try to get around a location check.
Do you pay taxes on prediction market winnings?
Winnings are generally taxable income in the U.S. How event contracts are treated is a question for a tax professional; keep a record of every trade, including losses.
What should you do before opening an account?
- Check the exchange's own eligibility page and app from your location.
- Make sure you meet the age requirement: 18 for Kalshi, 21 for Novig.
- Have ID ready for verification; both exchanges require it.
- Read our guides to how Kalshi works and how Novig works.
Frequently asked questions
Is Novig legal in my state?
Novig says it is available everywhere except Arizona, Nevada and Michigan, based on your physical location when you trade, for users 21 and older.
What is the minimum age for Kalshi?
You must be 18 or older and pass identity verification.
Why can prediction markets operate where sports betting is illegal?
They are regulated by the CFTC as designated contract markets and argue federal law governs their contracts. Several states dispute this, and federal appeals courts have reached different conclusions.
Sources
- Novig Support: Eligibility and legality
- Kalshi Help Center: Signing up as an individual
- CFTC press release 8302-20: Kalshi designated a contract market
- CFTC: Order designating Ludlow Exchange (Novig) a contract market
- SBC Americas: Third Circuit rules for Kalshi in New Jersey
- Proskauer: Ninth Circuit on Nevada and sports contracts
- SBC Americas: Sixth Circuit sides with Ohio and Tennessee
- The Block: Michigan court order on Kalshi sports markets
Facts that change, such as fees, rules and where each exchange operates, were checked on the date above. Check the exchange's own pages before you trade.
Sports Index Markets Every college football price in one place Novig and Kalshi side by side, with price history, strategies with graded records and the twice-weekly Betting Roundup. Open Markets →Keep reading
What are sports prediction markets?Sports prediction markets sell contracts on games that pay $1 if you are right. How they work, what prices mean and how they differ from sportsbooks.
How Novig worksNovig is a CFTC-regulated sports exchange with no-vig prices. How take and make orders, parlays, selling early, fees and eligibility work.
How Kalshi works for sportsHow to trade sports on Kalshi: Yes and No contracts, prices as probabilities, quick and limit orders, selling early, settlement and deposits.
Sports Index publishes research and paper picks; it is not a sportsbook or an exchange and takes no bets. Trading on prediction markets risks real money. You must meet the exchange's age requirement and be in an eligible state. If gambling is a problem for you or someone you know, call or text 1-800-GAMBLER.