Online Sports Trading Legality by U.S. State

Gambling has always been a legal grey area in the United States, and the recent advent of prediction markets has muddied the waters even more, especially since U.S. operators launched online sports trading products in 2025.

For the uninitiated, prediction markets are exchange-traded platforms where individuals can “invest” on the outcome of a variety of events with an unknown future. Trades are generally made on “Yes / No” and either/or poll-type predictions relating to everything from weather events and pop culture phenomena to currency valuations and political election outcomes. While prediction markets have existed in the U.S. for decades, debate over whether or not what they are offering is a gambling product ramped up recently when in the first fiscal quarter of 2025, a pair of U.S. based prediction market operators added online sports trading to their platforms.

Sports trading functions the same way as all other “investments” made on events. For example, during the NFL football season, members can make a trade on whether they think the San Francisco 49ers [pick] or the New Orleans Saints [pick] will win in a regular season NFL Week 2 matchup. There may not be point spreads, moneylines, or parlays at play, but one can see how sports trading is perceived by many as sports betting, and therefore a form of gambling.

Why is the distinction important? Currently, prediction market operators and their sports trading products fall under the regulatory jurisdiction of the Commodity Futures Trading Commission (CFTC). The CFTC is a U.S. government agency that regulates the country’s derivatives markets, including futures, options, and swaps. Its stated mission is to create an environment of open, transparent, competitive, and financially sound markets by preventing fraud, manipulation, and abusive trading practices, thereby protecting market participants and reducing systemic risk to the U.S. economy. What the CFTC is not qualified to do, is regulate sports betting. The latter lands under the jurisdiction of the gambling commissions of each individual U.S. state.

So, is sports trading legal in the United States? Because sports trading is currently regulated by the CFTC, it is currently allowed in all 50 U.S. states including D.C. in addition to the unincorporated territory of Puerto Rico. That means sports trading is legal in regions where sports betting is not allowed or regulated. It may therefore seem redundant to publish a map of U.S. states offering legal sports trading. However, the contentious debate over how sports trading should be defined (as gambling or otherwise) could very well change how it is regulated in the near future. At press, a growing number of gambling regulators in the U.S. have filed Cease & Desist letters to leading (and CFTC regulated) sports trading operators, including Robinhood, Kalshi, and Crypto.com. At some point, separation of sports trading from CFTC regulation may occur, and if so, the map of U.S. states offering legal sports trading may look notably different.

As America’s leading problem gambling support provider, Kindbridge Behavioral Health is beholden to keep the public, media, and other stakeholders informed about developments regarding the legality of sports trading in the United States. Bookmark this page, and check back often as we update the map to coincide with changes in the legal landscape