Kalshi is federally regulated by the CFTC, but some states have challenged its right to operate within their borders. Here's the current state of play as of 2026.
Federal vs. State Jurisdiction
Kalshi operates as a Designated Contract Market (DCM) under the Commodity Exchange Act, regulated by the CFTC. Under federal law, CFTC-regulated exchanges generally preempt state gaming regulations. However, several states have taken legal action arguing that prediction market contracts — especially sports-related ones — fall under their gambling jurisdiction.
The CFTC issued an Advanced Notice of Proposed Rulemaking (ANPRM) in early 2026 to clarify its exclusive jurisdiction over prediction markets, but the rulemaking process is ongoing.
Current Availability
Kalshi is available in most US states. The specific restrictions change as legal battles proceed. Rather than listing every state (which would be outdated quickly), here's how to check:
- Visit kalshi.com and attempt to create an account
- During the verification process, your state will be checked
- If your state is restricted, you'll be notified
States With Known Restrictions or Challenges
As of early 2026, legal challenges have come from:
- Massachusetts: Temporary injunction sought by state regulators
- Arizona: Criminal charges filed against certain prediction market activities
- Nevada: Restraining order related to sports-related contracts
Over 20 civil lawsuits have been filed across various states, though most are still in early stages. The legal landscape is evolving rapidly.
What Happens if My State Gets Restricted?
If Kalshi becomes unavailable in your state:
- Existing positions are typically allowed to settle
- New trades would be blocked
- Withdrawal of funds is always available
- Kalshi actively fights restrictions through legal channels
The Bigger Picture
The regulatory trend is toward federal preemption — the CFTC asserting that it has exclusive authority over prediction markets, superseding state gambling laws. If this is established (either through rulemaking or court decisions), Kalshi would be available in all 50 states.
Kalshi's position as a CFTC-regulated exchange with $43B+ in annual volume gives it significant legal standing. The company has stated publicly that it will continue to fight state-level restrictions.
Check If You Can Trade
Sign up to see if Kalshi is available in your state — it takes less than 5 minutes.
Free office hours with the founders
Drop in Mon, Tue & Wed at 9 AM Pacific — we'll help you build and run your Kalshi bots, live. Everyone welcome, no registration.
See office hours →Can't make 9 AM? Book a free 1:1 instead.