Vardan KhachatryanPrediction markets in Iowa
14 of the 15 apps we rank are open here, and 11 offer sports contracts.
- Apps restricted or contested
- Kalshi, DraftKings Predictions, Fanatics Markets, FanDuel Predicts
- Rulings and actions in Iowa
- 3 on record, listed in the timeline
- Legal sports betting
- Online and at casinos since 2019, for 21 and over
- Minimum age
- 18 on most apps, 21 on Novig and Interactive Brokers
- Federal appeals court
- Eighth Circuit: has not ruled on the question
- Last change
- September 17, 2026
Each entry on this page links the ruling or report it rests on. Nothing here is legal advice.
Why prediction markets are legal in Iowa
Prediction market apps sell event contracts: yes-or-no questions that pay $1 if the answer is yes. The CFTC regulates the exchanges that list them.
That federal oversight is why the apps need no Iowa license. It is also the point Iowa disputes.
Iowa already has legal sports betting, run through its casinos and licensed by the state. Sports contracts look a lot like it.
In September, a federal judge in Des Moines agreed that Iowa's gambling laws likely reach them. Nothing has been enforced yet. So who offers what?
Which prediction market apps work in Iowa
Almost every app we rank lets Iowans trade, and most offer sports contracts.
The exception is Fanatics Markets. It operates only where Fanatics has no sportsbook, and Iowa is not on its list.
DraftKings and FanDuel run licensed sportsbooks in Iowa too. Their prediction apps leave sports out here. Interactive Brokers lists no sports contracts anywhere.
Age rules differ. Most apps take traders from 18. Novig and Interactive Brokers require 21.
Kalshi is the one app in a court fight with Iowa. The table lists each app in our ranking order, with its status here.
| App | Status in Iowa | More |
|---|---|---|
| Kalshi | Contested for sports contracts, with no restriction in force | Is Kalshi legal in Iowa? |
| Gemini Predictions | Available, sports included | Gemini Predictions review |
| Polymarket US | Available, sports included | Polymarket review |
| OG | Available, sports included | OG review |
| Interactive Brokers | Available; it lists no sports contracts anywhere | Interactive Brokers review |
| Robinhood | Available, sports included | Robinhood review |
| ProphetX | Available, sports included | ProphetX review |
| Coinbase | Available, sports included | Coinbase review |
| Webull | Available, sports included | Webull review |
| Novig | Available, sports included | Novig review |
| DraftKings Predictions | Available, but not for sports contracts | DraftKings Predictions review |
| Fanatics Markets | Not available | Fanatics Markets review |
| FanDuel Predicts | Available, but not for sports contracts | FanDuel Predicts review |
| PrizePicks | Available, sports included | PrizePicks review |
| Underdog Predict | Available, sports included | Underdog Predict review |
Is Polymarket legal in Iowa?
Yes, through Polymarket US. It runs on a CFTC-designated exchange and accepts Iowa residents.
We found no Iowa action against Polymarket. It is not part of Kalshi's case.
The judge's reasoning is not limited to Kalshi, though. He found sports contracts in general unlikely to be swaps, whoever lists them.
The international site is a different product. Polymarket.com runs on crypto, is not CFTC-regulated and is close-only for Americans.
Our Polymarket review covers its fees, payouts and how the US app works.
How a prediction market trade works
Every contract is a yes-or-no question. It pays $1 if the answer is yes and nothing if it is no.
The price is the crowd's odds. A contract at 60¢ means traders put the chance at about 60%.
Say the Cyclones are 60¢ to win on Kalshi. You buy 100 contracts for $60, plus a $1.68 fee.
If they win, you collect $100, a $38.32 profit. If they lose, you are out $61.68.
You can also sell before the result, at whatever the market pays then. New to this? Start with what prediction markets are.
What Iowa has said about prediction markets
Iowa has not sued a prediction market app or ordered one to stop. It has left no doubt where it stands, though.
Attorney General Brenna Bird has signed briefs against Kalshi in other states' cases. After Kalshi lost in Iowa, she called the ruling “a victory for the rule of law and for protecting Iowans.”
“Out-of-state betting platforms cannot simply invent a loophole to ignore state law,” she added.
The Racing and Gaming Commission, which licenses sportsbooks, has not acted against any app.
Lawmakers took a different route. On March 31, 2026, the Iowa Senate voted 45 to 1 to license and tax prediction markets.
Senate File 2470 would have taxed the apps' Iowa revenue at 20%. It would also have withheld state tax on gains over $600.
It stalled in the House and has not become law.
The court cases that shape Iowa's rules
One case matters most: KalshiEX LLC v. Bird, No. 4:26-cv-00109. Kalshi brought it, before Iowa had done anything.
Kalshi sued Iowa's attorney general and gaming regulators on March 11, 2026. It wanted a court order barring enforcement before any began.
On September 8, Judge Stephen Locher refused. He found sports contracts unlikely to be “swaps,” the federal category only the CFTC regulates.
Kalshi has appealed to the Eighth Circuit, No. 26-2874. That court has never ruled on the question.
Its district courts are split. In July, a Minnesota judge blocked that state's ban on prediction markets, in cases Polymarket US and Kalshi brought.
Our page on whether Kalshi is legal in Iowa covers the case in full.
What Iowans can trade
Iowa has no major-league team, so its local markets are college games. Iowa State's October 3 game against West Virginia already trades on Kalshi.
Iowa elects a governor and a US senator on November 3, 2026.
The Senate race trades on Kalshi: see the Iowa Senate odds. So does the governor's race: Iowa governor odds.
Iowa also has a market of its own. The University of Iowa has run the Iowa Electronic Markets, small real-money election markets, since 1988.
Accounts there are capped at $500. It is a research project with CFTC no-action letters from 1992 and 1993, not a commercial exchange.
The risks for Iowa traders
The law could shift. A federal judge has ruled that Iowa's gambling laws likely apply to Kalshi, and nothing stops Iowa from acting.
If Iowa does act, Kalshi says it would close Iowa users' open positions before they settle.
You can lose everything you put into a contract. A 90¢ favorite that loses pays nothing.
Trade only what you can afford to lose. Our responsible trading guide covers limits and where to get help.
What could change for Iowa traders
Four things could. First, Iowa could act, and the September ruling leaves it free to.
Second, the Eighth Circuit could rule on Kalshi's appeal. Kalshi's opening brief is due November 6, 2026, so a decision is months away.
Third, lawmakers could try again. A new licensing and tax bill could return when the legislature meets in 2027.
Or the Supreme Court could settle it. New Jersey has asked it to, after the circuits split. A ruling there would apply in every state.
Our litigation tracker follows each of these cases.
Iowa prediction market timeline
Every change to prediction markets' standing in Iowa, newest first. Each entry links the ruling, filing or bill behind it.
Prediction markets vs sports betting in Iowa
In Iowa you can choose. Licensed sportsbooks and prediction market apps both serve Iowans.
The sportsbooks answer to the Racing and Gaming Commission. Bettors must be 21 and in Iowa, and every book partners with a licensed casino.
The apps answer to the CFTC. Most take traders from 18, and you trade against other people rather than a house line.
How to choose a prediction market app in Iowa
Start with what you want to trade. For sports, note that DraftKings and FanDuel leave them out here, and Fanatics Markets is not offered.
For politics and the economy, Polymarket US and Kalshi list the widest range.
Then compare fees. They vary more than prices do. Our fee comparison works out each app's cost on the same trade.
Our app rankings score every app on the same six criteria. Each review covers fees, payouts and the lawsuits against it.
If you use Kalshi, read whether Kalshi is legal in Iowa first. It covers the appeal and what could happen to open positions.