Where Kalshi and Polymarket stand legally (as of September 2026)
A factual tracker of public rulings and filings, not legal advice. This area is changing month to month; check the sources for the current state.
The federal picture
Kalshi is a CFTC-regulated exchange. Polymarket US operates a separately regulated US venue; Polymarket's original global platform is not available to US accounts. Federal courts have generally treated Kalshi's event contracts as swaps under the Commodity Exchange Act, which would preempt state gambling law — a US appellate court allowed Kalshi to keep offering sports contracts in New Jersey while litigation continues.
Where states have pushed back on sports contracts
| State | What has happened |
|---|---|
| New York | The Attorney General filed a civil suit calling Kalshi's sports contracts illegal gambling. |
| Massachusetts | A Superior Court judge issued a preliminary injunction barring in-state sports contracts without a gaming license (January 2026). |
| Nevada | A temporary restraining order covered sports, election, and entertainment contracts; Kalshi removed those categories for Nevada users. |
| New Jersey | A federal appellate court held the state cannot enforce its sports-betting laws against Kalshi while the case proceeds. |
The pattern so far: federal courts lean toward CFTC jurisdiction; several state courts and regulators treat sports contracts as gambling. Economic and political contracts have drawn less state action than sports contracts. Your own state's status can change with a single ruling.