Are Prediction Markets Legal in California?
Yes. prediction markets are legal in California. These platforms are regulated at the federal level by the Commodity Futures Trading Commission (CFTC), which classifies event contracts as "financial derivatives". That federal oversight is what allows them to operate in all 50 states, including states like California that haven't passed their own legislation on sports betting.
It's worth noting that this hasn't gone unchallenged. In 2025, three California tribal nations filed a lawsuit against Kalshi and Robinhood, arguing that sports event contracts violate tribal gaming compacts. A federal judge denied the tribes' request for a preliminary injunction in November 2025, and so the platforms continue to operate.
It seems as though there's a new court battle every day, so this could change at any moment, but for now, prediction platforms can be used from anywhere in the Golden State.
Legal Prediction Platforms in California
California has access to a growing list of federally regulated prediction platforms. Here are the most popular ones currently available in California.
Kalshi
Kalshi California is the largest CFTC-regulated prediction exchange in the U.S. and the platform most people start with. It covers sports, politics, economics, entertainment, climate, and more. You can fund your account with a standard bank transfer, and there's no crypto wallet required. Kalshi also powers Robinhood's prediction market product, so the two share a lot of the same contract inventory
Polymarket
Polymarket is the global volume leader and gained massive attention during the 2024 presidential election cycle. It's crypto-native, meaning you'll need a digital wallet to be able to trade contracts. It's particularly strong on political, macroeconomic, and trending news markets.
Robinhood
As one of the most popular financial investment apps out there, you may already have a Robinhood account, making this the easiest way to get started with prediction markets.
You also don't have to use crypto to fund your account, making it even more accessible.
OG.com
OG.com launched in February 2026 in partnership with Crypto.com, operating as a standalone prediction platform with social features like leaderboards and community engagement. It's available in 49 states (all except New York) and covers sports, finance, entertainment, and elections. You can fund with cash or crypto through the Crypto.com app.
DraftKings Predictions
Not wanting to leave any potential profit on the table, DraftKings launched its own prediction platform in December 2025 across 38 states, including California. It offers sports event contracts in states where DraftKings doesn't operate its traditional fantasy or daily fantasy products.
FanDuel Predicts
FanDuel Predicts expanded to California in January 2026 and operates as a standalone app. Similar to the others on this list, you'll find sports contracts alongside economics and finance markets. FanDuel has stated publicly that it plans to wind down sports prediction markets in any state that passes its own legislation for traditional sports platforms.
What to Know About California Prediction Markets
If you've never used a prediction market before, the concept is simpler than it might sound. Here's a quick rundown of how it all works.
What Is a Prediction Market?
A prediction market is a platform where you buy and sell contracts tied to the outcome of real-world events. Think of it more like a stock exchange than anything else. Instead of buying shares in a company, you're buying shares in an outcome.
Each contract is priced between $0.00 and $1.00. That price reflects the market's collective view of how likely the outcome is. If a "Yes" contract is trading at $0.65, the market believes there's roughly a 65% chance that outcome happens. If you think the probability is higher than that, you buy. If you think it's lower, you sell (or buy "No"). When the event resolves, winning contracts pay out $1.00 and losing contracts pay $0.00.
You don't have to hold a contract until it resolves, either. If you buy at $0.40 and the price moves to $0.70 as sentiment shifts, you can sell your position early and pocket the difference. That flexibility is part of what makes these markets interesting. You can react to new information in real time, just like you would with stocks.
What Can You Trade on California Prediction Markets?
The range of available markets is one of the things that makes prediction platforms so different from anything else available in California. You're not limited to one category. Depending on the platform, you can take positions on:
Sports outcomes like game winners, championship futures, player performance milestones, and season-long records. Sports contracts are among the most popular markets on nearly every platform right now, covering the NFL, NBA, MLB, NHL, college football, college basketball, soccer, golf, and more.
Politics and elections, including presidential races, congressional outcomes, approval ratings, cabinet appointments, and policy decisions. These markets gained credibility after the 2024 election cycle, when prediction platforms outperformed traditional polling in several key races.
Economics and finance, such as Federal Reserve interest rate decisions, inflation targets, GDP numbers, stock price milestones, and cryptocurrency benchmarks.
Entertainment and culture, covering award show outcomes, box office performance, social media milestones, and viral moments.
Geopolitics, science, and climate, including international conflicts, diplomatic events, research breakthroughs, and weather-related outcomes.
Some platforms also list more unconventional markets. Kalshi, for instance, has hosted contracts on whether specific words will be mentioned during earnings calls and whether certain phrases will come up during live TV broadcasts. The variety is genuinely broad, and it's growing every month.
How Prediction Markets Work Differently
Prediction markets are structured as peer-to-peer exchanges. When you take a position, another participant on the platform is taking the other side. Prices aren't set by the house. They're set by the collective activity of everyone trading in that market.
This is a fundamentally different model from what most people are used to. There's no vig or built-in margin working against you on every transaction. Instead, platforms charge small fees on trades or withdrawals. The pricing is transparent, and it moves based on supply and demand.
The other key difference is scope. Traditional platforms for placing money on sports only cover, well, sports. Prediction markets cover essentially any event with a verifiable outcome and a clear deadline. That's why you see contracts on things like inflation data, Supreme Court rulings, and whether it will snow in a particular city on Christmas Day. The sports contracts get the most attention, but the breadth of categories is one of the biggest draws.
Because these platforms are regulated as financial exchanges under the CFTC, the structure also comes with consumer protections you wouldn't find on an unregulated platform. Funds are held in segregated accounts, platforms maintain audit trails, and there are rules around market integrity and manipulation.
California Prediction Markets FAQs
Yes, you are legally allowed to buy and sell (trade) contracts on prediction platforms in California. Since prediction markets are currently legal and regulated at the federal level, they bypass any restrictions at the state level.
Author
Cody Kutzer has been covering the sports betting and gambling space for several years and has been losing his parlay bets for even longer. He currently serves as an editor and fact-checker for BetCalifornia.com to ensure readers have the latest and most accurate information surrounding what's happening in California sports betting.
