Is Kalshi Legal in New York? Polymarket and Prediction Markets in NY (2026)
Short answerPartly. Kalshi and Polymarket US are federally regulated, but New York says their sports contracts are unlicensed sports betting under state law. A federal judge refused to block New York’s enforcement against Kalshi on July 7, 2026, and the cases continue. Neither holds a Gaming Commission license.
Last verified: October 31, 2026 against federal court rulings, New York State Gaming Commission advisories, the Attorney General’s September 2026 lawsuit and Senate bill S5935
Is Kalshi legal in New York? It depends on who you ask. Kalshi says it is a federally regulated exchange that only the Commodity Futures Trading Commission (CFTC) can police. New York’s Gaming Commission says a contract that pays out on a game is a sports bet, and mobile sports betting needs a state license.
This page is general legal information, not advice. For apps that do hold a license, see our list of legal sportsbooks in New York.
Key facts
- State position: the Gaming Commission says sports event contracts on prediction markets are not licensed or regulated by New York.
- Kalshi: a federal judge in Manhattan denied Kalshi’s request for a preliminary injunction on July 7, 2026, and the Second Circuit later declined to block enforcement while Kalshi’s appeal proceeds.
- Polymarket: Attorney General Letitia James sued Polymarket US on September 24, 2026.
- Sweepstakes sites:
S5935bans dual-currency sweepstakes casinos and sportsbooks, with fines of $10,000 to $100,000 per offense. - Age: licensed sports betting in New York is 21 and older.
Is Kalshi legal in New York?
Not under the state’s view. In October 2025 the Gaming Commission sent Kalshi a cease-and-desist letter saying it offers sports wagering without a license. Kalshi sued the Commission in federal court, arguing the Commodity Exchange Act gives the CFTC exclusive authority.
On July 7, 2026, Judge Analisa Torres of the Southern District of New York denied Kalshi’s request for a preliminary injunction. She assumed without deciding that the contracts are swaps, and still found that New York’s gambling laws are not preempted when applied to Kalshi’s sports contracts. Kalshi appealed within a day. On July 29, 2026 the Second Circuit denied its request for an injunction while the appeal proceeds, and we found no final appeals ruling as of today.
The fight has widened since. On July 31, 2026, Attorney General James and Governor Hochul announced a state lawsuit against Kalshi, alleging unlicensed gambling and service to users aged 18 to 20. In October 2026 the Commission asked a New York court to enforce subpoenas it says Kalshi did not answer, covering sports contracts, offers to people under 21 and advertising that calls the products bets.
Is Polymarket legal in New York?
The state says no. On September 24, 2026, Attorney General James and Governor Hochul announced a lawsuit against QCX LLC, which operates Polymarket US. The suit says Polymarket’s markets are gambling, that it has no Gaming Commission license, and that it served users aged 18 to 20.
Polymarket received CFTC approval to return to the U.S. in late 2025 and has filed its own lawsuit against New York officials arguing federal law controls. We found no ruling in either case.
Are Novig, ProphetX and Onyx Odds legal in NY?
Novig and ProphetX began as sweepstakes-style sites, and that model is now banned. Governor Hochul signed S5935 in December 2025. It prohibits operating or promoting online sweepstakes casinos and sportsbooks that use dual currencies, and it reaches people and businesses that profit from them. The Gaming Commission and the Attorney General can enforce it.
Both companies have since moved to federal prediction market status: the CFTC approved ProphetX as a contract market in June 2026 and designated Novig’s exchange, Ludlow, days later. That does not give either a New York license. Onyx Odds is a separate case, tied to Polymarket sports contracts, and we could not confirm its current New York status. None of the three is a licensed New York sportsbook, so treat each as unlicensed under state law until the Commission says otherwise. Our page on offshore and sweepstakes sites covers the ban in more detail.
| Platform | Federal status | New York position |
|---|---|---|
| Kalshi | CFTC-regulated exchange | Cease-and-desist; injunction denied July 7, 2026; appeal pending |
| Polymarket US | CFTC-approved return in late 2025 | Sued by the Attorney General on September 24, 2026 |
| Novig | CFTC-designated exchange (June 2026) | Sweepstakes model banned by S5935; no state license |
| ProphetX | CFTC-approved contract market (June 2026) | Sweepstakes model banned by S5935; no state license |
| Onyx Odds | Not confirmed | Not on the Commission’s licensed list |
Why does New York say prediction markets are gambling?
New York’s constitution, NY Constitution Art. I, § 9, bars gambling unless the legislature and voters allow it, and licensed mobile sports betting launched in 2022 under a state program. The Attorney General’s case rests on the idea that betting on uncertain outcomes is gambling no matter how the product is labeled.
The federal argument is different. The Commodity Exchange Act, 7 U.S.C. § 7a-2(c), lets the CFTC review event contracts, and the platforms say that makes state licensing unnecessary. The court has not accepted that argument so far.
New York City: the city has no separate rule. The Gaming Commission and the Attorney General handle these cases statewide, so the same position applies in all five boroughs.
Timeline of New York prediction market actions
- June 2025: the Attorney General sends cease-and-desist letters to more than two dozen sweepstakes platforms.
- October 2025: the Gaming Commission sends Kalshi a cease-and-desist letter, and Kalshi sues.
- December 2025:
S5935is signed and takes effect. - June 2026: the Commission advisory warns that sports event contracts and sweepstakes casino games are unlicensed.
- July 7, 2026: Kalshi’s injunction request is denied. On July 29 the Second Circuit also denies an injunction pending appeal, and on July 31 the Attorney General sues Kalshi.
- September 24, 2026: the Attorney General sues Polymarket US.
- October 2026: the Commission asks a state court to enforce its subpoenas to Kalshi.
Can you get in trouble for using Kalshi or Polymarket in NY?
The cases so far name the companies, not the people who trade. Penal Law Article 225 mainly punishes people who promote or profit from gambling. Your more practical risks are an account that gets blocked, a delayed withdrawal and no New York dispute process if the platform leaves the state.
Could New York ban prediction markets by statute?
A bill would. The ORACLE Act, A09251 from Assembly Member Clyde Vanel, would add Article 48 to the General Business Law and bar prediction markets on athletic events, with civil fines up to $10,000 per violation. The latest status we could confirm was that it remained in committee. Senator Joe Addabbo has argued for regulating prediction markets rather than banning them.
Myths and facts
- Myth: Federal regulation means the state cannot act. Fact: a federal judge refused to block New York’s enforcement against Kalshi.
- Myth: If the app opens in New York, it is licensed. Fact: only the Gaming Commission’s licensed operator list shows state approval.
- Myth: Rebranding as a prediction market avoids the sweepstakes ban. Fact:
S5935targets the dual-currency model itself.
Frequently asked questions
Is Kalshi legal in NY?
New York says no for sports contracts, because Kalshi has no Gaming Commission license. Kalshi says federal law controls. A federal judge denied its injunction request on July 7, 2026, and the appeal is pending, so the dispute is unresolved.
Is Polymarket legal in NY?
The Attorney General sued Polymarket US on September 24, 2026, calling it an unlicensed gambling business. Polymarket has countersued, arguing CFTC authority. No court has ruled, and Polymarket has no New York license.
Is Novig legal in New York?
Novig is not a licensed New York sportsbook. Its sweepstakes model fell under the December 2025 ban. Federal clearance for a prediction market does not replace state permission.
Is ProphetX legal in NY?
ProphetX holds no New York license. Its sweepstakes product was hit by S5935, and its June 2026 CFTC approval is a federal step only. Check the Commission’s licensed list before using any app.
Is Onyx Odds legal in NY?
Onyx Odds is not on the Gaming Commission’s list of licensed operators, and we could not confirm a current New York offering. Treat it as unlicensed under state law unless the Commission lists it.
Which sports betting apps are legal in New York?
Only operators licensed by the Gaming Commission, for adults 21 and older located in New York. See our overview of gambling law in New York for what else is allowed.
What changed on this page
- October 31, 2026: first publication, checked against the July 7, 2026 federal ruling, the Attorney General’s September 24, 2026 suit,
S5935and billA09251. Spotted a mistake? See our corrections page and editorial policy.
If this affects you
If a platform freezes your balance, file a complaint with the New York Attorney General’s consumer office or the Gaming Commission. For a legal question, talk to a New York-licensed attorney, and the New York State Bar Association lawyer referral service can help you find one. For free, confidential help with problem gambling, call 1-877-8-HOPENY (1-877-846-7369). Browse more topics in our gambling and betting section.
