Are prediction markets legal in Massachusetts?

By Vardan KhachatryanLast updated: Litigation tracker

Yes, for now. Prediction markets are legal in Massachusetts while the courts decide, and most offer sports. The state won an injunction against Kalshi's sports contracts in January 2026, but it is on hold. The Supreme Judicial Court heard the appeal on May 4 and has not ruled.

Prediction markets in Massachusetts

14 of the 15 apps we rank are open here, and 9 offer sports contracts.

Apps restricted or contested
Kalshi, Polymarket US, OG, Robinhood, DraftKings Predictions, Fanatics Markets, FanDuel Predicts, PrizePicks
Rulings and actions in Massachusetts
3 on record, listed in the timeline
Legal sports betting
In person since January 31, 2023; online since March 10, 2023
Minimum age
18 on most apps, 21 on three
Key case
Commonwealth v. KalshiEX LLC, SJC-13906
Federal appeals court
First Circuit: has not ruled on the question
Last change
September 8, 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 Massachusetts, for now

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.

The apps say federal oversight overrides state gaming law. Massachusetts disagrees, at least for sports.

The state has won the first round. A Superior Court judge ruled in January 2026 that Kalshi needs a state license for sports contracts.

That order has been on hold since February 17. Until the Supreme Judicial Court rules, nothing stops residents from trading.

Here is who offers what, and what that ruling could change.

Which prediction market apps work in Massachusetts

Every app we rank accepts Massachusetts residents. Most offer sports contracts, but not all.

The sportsbook brands hold back. DraftKings, FanDuel and Fanatics run licensed sportsbooks here, and the Gaming Commission bars licensees from sports event contracts.

OG, PrizePicks and Interactive Brokers list no sports contracts here either.

Five apps have sued or been sued over this: Kalshi, Polymarket, Robinhood, Novig and Underdog. See Polymarket in Massachusetts and Robinhood in Massachusetts.

Age rules differ. Most apps take traders from 18. Novig, Fanatics Markets and Interactive Brokers require 21.

The table lists each app in our ranking order, with its status here and a link to our review.

Every app we rank, in ranking order, and where it stands in Massachusetts.
AppStatus in MassachusettsMore
KalshiContested for sports contracts, with no restriction in forceIs Kalshi legal in Massachusetts?
Gemini PredictionsAvailable, sports includedGemini Predictions review
Polymarket USContested for sports contracts, with no restriction in forceIs Polymarket legal in Massachusetts?
OGAvailable, but not for sports contractsOG review
Interactive BrokersAvailable; it lists no sports contracts anywhereInteractive Brokers review
RobinhoodContested for sports contracts, with no restriction in forceIs Robinhood legal in Massachusetts?
ProphetXAvailable, sports includedProphetX review
CoinbaseAvailable, sports includedCoinbase review
WebullAvailable, sports includedWebull review
NovigAvailable, sports includedNovig review
DraftKings PredictionsAvailable, but not for sports contractsDraftKings Predictions review
Fanatics MarketsNot availableFanatics Markets review
FanDuel PredictsAvailable, but not for sports contractsFanDuel Predicts review
PrizePicksAvailable, but not for sports contractsPrizePicks review
Underdog PredictAvailable, sports includedUnderdog Predict review

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 Celtics are 60¢ to win tonight 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 Massachusetts has said about prediction markets

Two state bodies speak on this, and they agree. Attorney General Andrea Joy Campbell brings the cases. The Gaming Commission licenses sportsbooks.

Campbell sued Kalshi on September 12, 2025, for sports wagering without a license. The commission had asked her to.

On November 13, 2025, the commission told every licensed sportsbook that offering sports event contracts in Massachusetts is prohibited.

It warned of steps “up to and including revocation” of their licenses.

Commission chair Jordan Maynard said prediction markets “may be even more harmful than the offshore books.”

Neither has acted against Polymarket or Robinhood. Both got written promises instead, tied to Kalshi's appeal.

Massachusetts also led a brief for 26 other states and DC, backing California tribes against Kalshi at the Ninth Circuit.

The court cases that shape Massachusetts' rules

One case matters most: Commonwealth v. KalshiEX LLC, now before the Supreme Judicial Court as No. SJC-13906.

Judge Christopher K. Barry-Smith granted the state a preliminary injunction on January 20, 2026. It would bar Kalshi's sports contracts for anyone in Massachusetts.

An Appeals Court justice stayed it on February 17. The SJC heard argument on May 4, and the justices sounded skeptical of Kalshi.

Justice Dalila Wendlandt put it plainly. “If Congress was going to take some role in sports gambling, it would have been more explicit,” she said.

Four federal suits wait in the wings. Polymarket's and Novig's are paused until the SJC rules, and Robinhood's is on appeal.

Underdog filed the fourth on September 8. The First Circuit, which covers Massachusetts, has not ruled on the question.

Our page on whether Kalshi is legal in Massachusetts covers the main case in full.

What Massachusetts residents can trade

Sports lead. Contracts cover the Patriots, Celtics, Red Sox and Bruins. The Red Sox named Kalshi their official prediction market partner in August 2026.

College football is on the board too. Kalshi lists games for UMass, Boston College, Harvard and Holy Cross.

Massachusetts sportsbooks cannot take those bets outside tournaments. The state's case cites that gap.

Politics is close behind. Governor Maura Healey faces Republican Michael Minogue on November 3, 2026. See the live Massachusetts governor odds.

The Senate race trades too. Ed Markey beat Seth Moulton in the September 1 primary and faces Republican John Deaton.

Economics, crypto and weather markets round it out.

The risks for Massachusetts traders

The law could shift on one ruling. If the SJC sides with the state, Kalshi's sports contracts could end here, and other apps could follow.

Location matters. The injunction reaches anyone located in Massachusetts, not just residents.

You can lose everything you put into a contract. A 90¢ favorite that loses pays nothing.

Taxes are unclear. Massachusetts taxes most income at 5% but short-term capital gains at 8.5%. We found no state guidance on which applies.

Trade only what you can afford to lose. Our responsible trading guide covers limits and where to get help.

What could change for Massachusetts traders

One ruling could. The SJC decision in Kalshi's case will decide whether the injunction takes effect.

It also starts clocks. The state's promises to Polymarket and Robinhood are tied to that ruling.

Then comes the federal layer. The First Circuit has Robinhood's appeal, and New Jersey has asked the Supreme Court to settle the question.

Our litigation tracker follows each of these cases.

Massachusetts prediction market timeline

Every change to prediction markets' standing in Massachusetts, newest first. Each entry links the ruling, filing or report behind it.

Underdog sued Massachusetts officials in federal court over its sports contracts. Source
Novig sued Massachusetts officials in federal court. The case was paused on August 24 until the SJC rules. Source
The Superior Court let the attorney general add seven consumer protection counts against Kalshi. Source
The Supreme Judicial Court heard argument in Commonwealth v. KalshiEX LLC, No. SJC-13906. Source
A federal judge dismissed Robinhood's suit against the state a second time. Robinhood appealed to the First Circuit. Source
The SJC agreed to hear Kalshi's appeal directly. The same day, Polymarket's federal case was paused until the SJC rules. Source
An Appeals Court justice stayed the injunction against Kalshi pending appeal. Source
Polymarket US sued the attorney general and the Gaming Commission in federal court. Source
Judge Christopher K. Barry-Smith granted Massachusetts a preliminary injunction against Kalshi's unlicensed sports contracts. Source
The Gaming Commission barred licensed sportsbooks from offering sports event contracts in Massachusetts. Source
Robinhood sued Massachusetts officials in federal court to block state gaming law as applied to its sports contracts. Source
Attorney General Andrea Joy Campbell sued Kalshi in Suffolk Superior Court for unlicensed sports wagering. Source

Prediction markets vs sports betting in Massachusetts

Massachusetts legalized sports betting on August 10, 2022. In-person betting started on January 31, 2023, and mobile betting on March 10.

Seven online sportsbooks are live. The state taxes their revenue at 20%, and in-person books at 15%.

Bettors must be 21. Sportsbooks may not take bets on in-state college teams outside tournaments, or on college players' stats.

Prediction markets follow none of those rules. Most take traders from 18, and none holds a state license.

That is the gap the attorney general's case is about. If a dispute comes up, you complain to the app first, then to the CFTC.

How to choose a prediction market app in Massachusetts

Start with what you want to trade. No Massachusetts action touches politics or economics markets.

For sports, weigh the legal risk. Every app offering sports here depends on how the SJC rules.

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 Massachusetts first. It covers the injunction and the appeal.

Prediction markets in Massachusetts: FAQ

Are prediction markets legal in Massachusetts?

Yes, for now. The apps operate under the CFTC, and no court order against them is in force here. The injunction against Kalshi's sports contracts is on hold pending appeal.

Is Kalshi legal in Massachusetts?

Yes, for now. A judge ruled in January 2026 that Kalshi needs a license for sports contracts. That order is stayed while the SJC decides.

Is Polymarket legal in Massachusetts?

Yes, for now. Polymarket US sued the state in February 2026. The state agreed not to act against it until after the SJC rules on Kalshi.

Can I use Robinhood prediction markets in Massachusetts?

Yes. Robinhood lists no Massachusetts limit, and the state has promised not to act against it while Kalshi's appeal runs.

Can I bet on sports in Massachusetts?

Yes, with a licensed sportsbook if you are 21 or over. Seven online sportsbooks are live, including DraftKings, FanDuel and BetMGM.

How old do you have to be to use prediction markets in Massachusetts?

18 on most apps. Novig, Fanatics Markets and Interactive Brokers require 21, the same age as the state's sportsbooks.

Are prediction markets gambling in Massachusetts?

A Superior Court judge said Kalshi's sports contracts need a sports wagering license, so the state treats them as betting. The apps say they are federally regulated derivatives. The SJC will decide.

Do I pay tax on prediction market profits in Massachusetts?

Yes. Massachusetts taxes most income at 5% and short-term capital gains at 8.5%. Which rate applies to event contracts is not settled, so ask a tax adviser.

Is this legal advice?

No. It summarizes public rulings and filings, each cited. For a decision that matters, ask a lawyer licensed in Massachusetts.

Sources

  1. Suffolk Superior Court: Commonwealth v. KalshiEX LLC, No. 2584CV02525, preliminary injunction decision (Jan 20, 2026)
  2. Massachusetts Attorney General: AG Campbell sues Kalshi (Sep 12, 2025)
  3. D. Mass.: Underdog v. Campbell complaint describing the stay and the pending SJC appeal (Sep 8, 2026)
  4. Bloomberg Law: Kalshi wins breathing room on Massachusetts ban during appeal
  5. Courthouse News: Massachusetts high court puts Kalshi on defense (May 4, 2026)
  6. CFTC: amicus brief in the Massachusetts Supreme Judicial Court (Apr 24, 2026)
  7. Massachusetts Gaming Commission: letter on sports event contracts (Nov 13, 2025)
  8. InGame: Gaming Commission chair Jordan Maynard on prediction markets (Mar 18, 2026)
  9. CourtListener docket: QCX LLC v. Campbell, No. 1:26-cv-10651
  10. CourtListener docket: Robinhood Derivatives, LLC v. Campbell, No. 1:25-cv-12578
  11. CourtListener docket: Ludlow Exchange, LLC v. Campbell (Novig), No. 1:26-cv-13615
  12. CourtListener docket: Underdog Exchange DCM, Inc. v. Campbell, No. 1:26-cv-14098
  13. Ninth Circuit: Blue Lake Rancheria v. Kalshi, No. 25-7504, listing Massachusetts as lead amicus (Sep 16, 2026)
  14. Massachusetts Secretary of the Commonwealth: 2026 primary results for governor
  15. Massachusetts Secretary of the Commonwealth: 2026 primary results for US Senate
  16. NBC Boston: Red Sox name Kalshi their prediction market partner (Aug 27, 2026)
  17. Kalshi market data: Eastern Michigan vs UMass (Oct 3, 2026)
  18. Massachusetts Gaming Commission: sports wagering revenue and tax rates
  19. Acts of 2022, Chapter 173: An Act Regulating Sports Wagering
  20. Massachusetts DOR: tax rates
  21. Kalshi fee schedule
  22. CFTC: tips and complaints

18+. Event contracts can lose their entire value. Nothing here is financial or legal advice. Trading responsibly.