Vardan KhachatryanPrediction markets in New Jersey
14 of the 15 apps we rank are open here, and 9 offer sports contracts.
- Apps restricted or contested
- OG, DraftKings Predictions, Fanatics Markets, FanDuel Predicts
- Rulings and actions in New Jersey
- 2 on record, listed in the timeline
- Legal sports betting
- Since June 2018; online revenue taxed at 19.75%
- Minimum age
- 18 on most apps; 21 at New Jersey sportsbooks
- Federal appeals court
- Third Circuit: ruled for Kalshi on April 6, 2026
- Last change
- September 2, 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 New Jersey
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 leaves no room for state gaming law. In New Jersey, a federal appeals court agrees, for now.
On April 6, 2026, the Third Circuit ruled Kalshi's sports contracts are likely swaps, which only the CFTC can regulate.
That ruling binds federal courts in New Jersey, Pennsylvania and Delaware. No other federal appeals court has sided with the apps.
New Jersey has asked the Supreme Court to reverse it. Here is who offers what while that plays out.
Which prediction market apps work in New Jersey
Most apps we rank accept New Jersey residents, and most list sports. Kalshi, Polymarket US, Robinhood, Coinbase, Gemini and Webull all do.
The sportsbook brands mostly hold back. DraftKings and FanDuel run licensed sportsbooks here, so their prediction apps skip sports in New Jersey.
OG lists no sports contracts in New Jersey. Fanatics Markets does not operate in the state at all.
Novig and Interactive Brokers require traders to be 21.
The table lists each app in our ranking order, with its status here and a link to our review.
| App | Status in New Jersey | More |
|---|---|---|
| Kalshi | Available for all contracts | Is Kalshi legal in New Jersey? |
| Gemini Predictions | Available, sports included | Gemini Predictions review |
| Polymarket US | Available, sports included | Polymarket review |
| OG | Available, but not for sports contracts | 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 New Jersey?
Yes, through Polymarket US. It runs on a CFTC-designated exchange and accepts New Jersey residents.
We found no New Jersey action against Polymarket US. The state's 2025 cease-and-desist letters went to Kalshi and Robinhood.
The Third Circuit's order protects Kalshi, not Polymarket. But its reasoning covers any CFTC-licensed exchange, and Polymarket US runs one.
The international site, polymarket.com, is a different product and is close-only for Americans. Our Polymarket review covers the US app.
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 Devils 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 New Jersey has said about prediction markets
New Jersey pushed back early. On March 27, 2025, the Division of Gaming Enforcement ordered Kalshi and Robinhood to stop.
Its letter said Kalshi was “listing unauthorized sports wagers for individuals located within the State of New Jersey.”
Attorney General Jennifer Davenport has since taken the fight national. In May 2026 she led 41 attorneys general in a comment to the CFTC.
“We call on the CFTC to stop their federal power grab and recognize this authority belongs with the States.”
Her Supreme Court petition makes the same case. Congress “did not silently make the sports-betting industry immune from state law,” she said.
The court cases that shape New Jersey's rules
One case matters more than any other: KalshiEX LLC v. Flaherty. Kalshi sued the state's gaming officials on March 28, 2025.
Judge Edward S. Kiel granted a preliminary injunction on April 28, 2025. The Third Circuit affirmed it on April 6, 2026, by 2-1.
“The Act preempts state laws that directly interfere with swaps traded on DCMs,” Judge David Porter wrote for the majority.
Judge Jane Roth dissented, arguing gambling has always been the states' to regulate.
Robinhood has its own case, Robinhood Derivatives v. Flaherty. A consent order of August 22, 2025, bars New Jersey from enforcement over the Kalshi contracts it sells.
Both cases are paused while the Supreme Court weighs New Jersey's petition, Flaherty v. KalshiEX, No. 26-299.
Our page on whether Kalshi is legal in New Jersey covers the case in full.
What New Jersey traders can trade
Sports lead. The Devils play in Newark, and the Giants and Jets at MetLife Stadium. South Jersey follows the Eagles, Phillies and 76ers.
College games are touchy. Sportsbooks cannot take bets on New Jersey college teams or college games played here. The attorney general says Kalshi lists them.
Politics trades too. Senator Cory Booker faces Republican Justin Murphy on November 3, 2026, and Kalshi lists the race.
Some markets are hyperlocal. Kalshi lists whether NJ Transit rail will hit 90% on-time performance in November.
The risks for New Jersey traders
The protection is preliminary. If the Supreme Court takes New Jersey's case and reverses, sports contracts here could close.
Court orders cover only Kalshi and Robinhood. Other apps rely on the ruling's reasoning alone.
You can lose everything you put into a contract. Taxes are unclear too: New Jersey taxes the profits as income, but the IRS treatment is not settled.
Trade only what you can afford to lose. Our responsible trading guide covers limits and where to get help.
What could change for New Jersey traders
The Supreme Court is the big one. Kalshi's response to New Jersey's petition is due November 9, 2026.
The justices then decide whether to hear it. Petitions from Robinhood and Crypto.com's exchange, from the Ninth Circuit side, are pending too.
A ruling would bind every state. The circuits are split: the Third sided with Kalshi, while the Ninth and Sixth ruled against it.
Trenton could act first. The 9% tax bill cleared both budget committees in June 2026, and floor votes have not happened yet.
Our litigation tracker follows each of these cases.
New Jersey prediction market timeline
Every change to prediction markets' standing in New Jersey, newest first. Each entry links the ruling or filing behind it.
Prediction markets vs sports betting in New Jersey
New Jersey opened the door to legal sports betting nationwide. It won Murphy v. NCAA at the Supreme Court on May 14, 2018.
Today its sportsbooks answer to the Division of Gaming Enforcement. They pay 19.75% of online revenue in tax, and bettors must be 21.
Prediction markets pay no state gaming tax and take traders from 18. You trade against other people, not a sportsbook's odds.
The CFTC supervises the exchange, not the Division of Gaming Enforcement. So if a dispute comes up, complain to the app first, then to the CFTC.
How to choose a prediction market app in New Jersey
Start with what you want to trade. 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 New Jersey first. It covers the Supreme Court petition.