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Prediction markets remain available in California for now, even as legal fights over sports event contracts continue to reshape access around the country.
A state-by-state update published this week says prediction markets are federally regulated by the Commodity Futures Trading Commission and are legal at the national level in all 50 states and Washington, DC. But actual availability still varies by state because of lawsuits, enforcement actions, and court orders involving platforms such as Kalshi and Polymarket.
California remains open while tribal challenge heads to the Ninth Circuit
In California, tribes challenged prediction markets, but a federal judge denied their request for an injunction, according to the report. That means the platforms discussed in the update remain accessible in the state while the case proceeds on appeal in the Ninth Circuit.
The broader dispute centers on sports event contracts, which the article says are the main target of state challenges. It also notes that prediction markets are not the same as traditional sports betting, even though they continue to draw scrutiny from state regulators and other stakeholders.
State access is shifting as lawsuits and enforcement actions continue
The report describes a patchwork national picture as of August 2026. Some states are actively contesting access, while others have temporarily been blocked from enforcing state laws.
Among the examples cited: Arizona filed criminal charges against Kalshi, but a federal injunction currently protects the platforms there. Connecticut sent cease-and-desist letters, and the CFTC later secured an injunction. Maryland’s case is on appeal to the Fourth Circuit. Minnesota passed a law that would have criminalized prediction markets, but a federal judge paused that ban with a preliminary injunction.
Other states have taken a harder line. Massachusetts has blocked Kalshi from offering sports event contracts, Michigan ordered Kalshi to pause operations, and Nevada is described as having the most restrictive posture in the country. Ohio also fined Kalshi $5 million for operating without meeting state gaming requirements.
What California users should watch next
For California users, the key point is that access can change quickly as appeals and enforcement actions move through the courts. The California case is now before the Ninth Circuit, and the article advises users to confirm current availability directly with each platform before funding an account.
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Source: As reported by lvfoxsports.com.
