Question 1

Are prediction markets legal in my state?

Accepted Answer

In most states, yes: Kalshi and Polymarket US accept users across most of the country. Nevada, Washington and Michigan have court orders restricting Kalshi's sports or non-financial markets, and Polymarket US trading is unavailable in Nevada. Ohio, Tennessee, Maryland, New York, Missouri, Arizona, Connecticut and Illinois are in active litigation or enforcement. Eligibility is based on where you are physically located when you trade.

Question 2

What is the best prediction market app?

Accepted Answer

On our weighted rating of App Store and Google Play scores, DraftKings Predictions ranks first at 4.816, just ahead of Kalshi at 4.796. Kalshi is the most popular by volume and offers the widest range of markets. The right choice depends on where you live and what you want to trade.

Question 3

Kalshi vs Polymarket: which is better?

Accepted Answer

Both are CFTC-regulated and open to users from 18. Kalshi is far larger, with about $40.1 billion of notional volume in July 2026, and has a higher rating, at 4.82 on the App Store and 4.7 on Google Play. Polymarket US offers a $25 credit for a first deposit of $10 or more, while Kalshi relies on referral rewards. Kalshi is restricted in Nevada, Washington and Michigan; Polymarket US is unavailable only in Nevada.

Question 4

Do you pay taxes on prediction market winnings?

Accepted Answer

Expect profits to be reported. Kalshi issues 1099 forms, including 1099-B and 1099-MISC, and Fanatics Markets says event contract payments and FanCash "may be classified as income." How the IRS classifies event-contract profits has not been settled in any official guidance we have been able to confirm, so keep records of every trade and speak to a tax adviser.

Question 5

What is the minimum age for prediction markets?

Accepted Answer

Kalshi, Polymarket US, DraftKings Predictions, FanDuel Predicts, Robinhood and PrizePicks Predict accept users from 18. Fanatics Markets and Novig require users to be 21. New York's lawsuit against Polymarket US argues that serving 18- to 20-year-olds breaches the state's 21+ rule for mobile sports betting.

Question 6

Is a prediction market the same as sports betting?

Accepted Answer

Not legally. A prediction market is a federally regulated exchange where traders buy and sell contracts with each other, and the platform earns fees. A sportsbook is licensed by a state, sets its own odds and takes the other side of each bet. Several states and federal appeals courts now argue that sports event contracts are gambling in all but name, and the Supreme Court has been asked to decide.

Question 7

Can you sell a prediction market contract before the event ends?

Accepted Answer

Yes. Contracts trade continuously, so you can sell at the current price at any time before settlement, locking in a profit or limiting a loss. Fees usually apply to the sale, and in a thin market you may not find a buyer at the price you want.

Question 8

How much money do you need to start?

Accepted Answer

Kalshi's minimum deposit is $10, Crypto.com says you can start with $10, and OG.com advertises a $1 start. Contracts cost between 1 and 99 cents each, so a small balance goes a long way, though welcome offers typically require a $10 deposit or a minimum amount of trading.

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Kalshi

Polymarket US