Prediction Markets in Texas (2026): What's Legal

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Informational only, not legal advice. Court orders in this area change month to month. Check the app before you deposit.

Texas has no casinos and no legal sports betting, but every major CFTC-regulated prediction market accepts Texas residents, sports included. No Texas agency has sued Kalshi or sent it a cease-and-desist letter, and Texas is not among the 21 states OddsShopper lists as contesting Kalshi (October 15, 2026). Texas is one of the 18 states where FanDuel Predicts and DraftKings Predictions list sports contracts. Texas has no state income tax.

Status as of October 2026

Platform	Status in Texas	Detail	Source
Kalshi	Available, including sports	No reported Texas action	OddsShopper tracker, Oct 15, 2026
Polymarket US	Available	Not on the widely reported blocked list (AZ, IL, MA, MD, MI, MT, NV, OH)	OddsShopper, Jul 2026
Robinhood prediction markets	Available	Restriction list names Maryland, Nevada and Michigan only	Robinhood support, Oct 2026
FanDuel Predicts	Available, including sports	Texas is one of 18 sports states	RotoWire, Sep 30, 2026
DraftKings Predictions	Available, including sports	Texas is one of 18 sports states	SI, Oct 16, 2026
Novig	Available (21+)	Texas is on its welcome-offer list	Action Network, Oct 8, 2026
OG (Crypto.com)	Check in app	CFTC-registered exchange behind it (CDNA)	Crypto.com
PredictIt	Available	$3,500 per-market cap since July 2025	CFTC Letter 25-20
Offshore sportsbooks	Not recommended	Not regulated in the US	n/a

Why prediction markets work in a state that bans sports betting

Prediction-market exchanges are regulated by the Commodity Futures Trading Commission as designated contract markets. Their argument is that federal commodities law covers event contracts listed on those exchanges and pushes state gambling law aside. Several states reject that argument for sports, and three federal appeals courts have split on it (the Third Circuit for Kalshi in New Jersey; the Ninth and Sixth Circuits against it in Nevada, Ohio and Tennessee).

Texas has not joined that fight. Until it does, or until the Supreme Court settles the question, Texans can trade the full menu on CFTC-regulated platforms. Texas sits in the Fifth Circuit, which has not ruled on the issue.

Kalshi in Texas

Kalshi offers Texas residents its full catalog: Cowboys, Texans, Astros, Rangers, Mavericks, Spurs and college football contracts, plus Fed decisions, CPI, weather (including Texas heat and hurricane markets when listed), politics and culture. It pays a variable 3.50% APY on balances of $250 or more (Kalshi help center, October 2026).

Kalshi's taker fee follows a published formula, 0.07 × contracts × price × (1 − price). At 50 cents that is about $1.75 per 100 contracts, which is roughly $3.50 for every $100 you put in (DeFi Rate fee guide).

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Polymarket US in Texas

Polymarket's US app runs on QCX, the CFTC-licensed exchange Polymarket bought in July 2025, under an amended CFTC order announced November 25, 2025 (Covers). Texas residents can sign up and fund in dollars. US taker fees have applied since July 1, 2026. The current rate works out to about $1.74 per 100 contracts at 50 cents, with a small rebate for makers (Polymarket US fee schedule, October 2026).

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Robinhood in Texas

Texas is not on Robinhood's restriction list, which names Maryland, Nevada and Michigan (Robinhood, October 2026). Robinhood routes contracts to KalshiEX, ForecastEx, Rothera or Crypto.com's North American Derivatives Exchange. The commission is 10% × price × (1 − price) per contract (5% with Gold), capped at $0.01, plus exchange fees of up to $0.01. You must be 18.

FanDuel Predicts, DraftKings Predictions and Novig

Texas is where the sportsbook brands can offer sports contracts, because neither runs a sportsbook in the state.

FanDuel Predicts lists sports and non-sports contracts for Texans aged 18 or older (RotoWire).
DraftKings Predictions lists sports on its DKeX exchange, launched June 24, 2026, with fees of $0.01–$0.02 per contract (SI).
Novig has been a CFTC-designated contract market since June 16, 2026. It is sports-focused, requires users to be 21, and charges no fee on pregame straight trades (Action Network).

We have not yet scored FanDuel Predicts, DraftKings Predictions or Novig.

PredictIt

PredictIt lists political markets under CFTC no-action relief. A July 2025 CFTC letter raised the per-market limit from $850 to $3,500 and removed the 5,000-trader cap (CFTC Letter 25-20). Fees are 10% of profits and 5% on withdrawals.

Avoid offshore "prediction markets"

Some offshore sportsbooks market themselves as prediction markets and take crypto deposits. They are not registered with the CFTC, they do not segregate customer funds under US rules, and you have no US regulator to complain to if they refuse a withdrawal. Stick to platforms that name a CFTC-registered exchange in their terms.

Taxes in Texas

Texas has no personal income tax, so profits are taxed federally only. Kalshi and other US exchanges send tax forms; keep your own trade records too. See the event-contract tax guide.

How to check your own access

Start the sign-up flow. Each platform asks your state and blocks you if it must.
Use your real address and no VPN.
Check this page again if Texas regulators act; we update the table when a court or agency does.

Compare: Florida, California. National picture: are prediction markets legal in the US?

Next: Prediction markets in Florida