Prediction Markets
in Massachusetts
Massachusetts is a caution state for prediction markets in 2026. The Massachusetts Gaming Commission (MGC) has been actively monitoring prediction market platforms and issued informal guidance suggesting it views sports event contracts as requiring state gaming authorization. No enforcement action has been filed as of May 2026, but the MGC's posture (combined with the broader wave of gubernatorial executive orders in neighboring states) puts Massachusetts on watch.
Which platforms are available in Massachusetts?
| Platform | Status in MA | Notes |
|---|---|---|
| Kalshi | Available | CFTC-regulated DCM: currently available in MA. Massachusetts Gaming Commission has not taken action against CFTC-regulated platforms, but their posture is cautious. |
| Polymarket | Waitlist | QCEX invite-only. MA has not blocked QCEX, but MGC is actively watching non-CFTC platforms. |
| Manifold | Available | Play-money available in Massachusetts. Sweepstakes cash available. |
| PredictIt | Available | CFTC no-action exemption. Politics-only, $850 cap. Available in MA. |
| Robinhood | Available | Sports and economic event contracts available. Monitor for MGC developments. |
Massachusetts Gaming Commission posture
The Massachusetts Gaming Commission was established in 2011 and has broad jurisdiction over gaming and wagering activities in the state. Massachusetts launched legal sports betting in 2023 with a small number of licensed operators. As prediction markets have grown in prominence, the MGC has placed them under review.
Unlike New York's NYDFS (which issued formal guidance) or Illinois's Gaming Board (which was named in an executive order), the Massachusetts Gaming Commission has not taken formal action. However, MGC staff comments at public hearings in 2025 and early 2026 indicate the commission views sports event contracts as falling within its jurisdiction. The commission has requested information from prediction market platforms on their Massachusetts user base.
- Kalshi: Currently operating in MA under CFTC preemption. No enforcement action filed as of May 2026, but monitor MGC developments.
- Non-CFTC platforms: Elevated risk given MGC's inquiries. Use CFTC-regulated platforms (Kalshi, IBKR/ForecastEx) to minimize state-level exposure.
- Political vs sports markets: The MGC's concern appears focused on sports contracts. Economics and political markets have a stronger CFTC preemption argument.
- Massachusetts has not joined the NY/IL executive order wave, but is the most likely New England state to follow if the trend continues.
Massachusetts prediction market tax rates
Massachusetts taxes most income at a flat 5%, but added a 4% surcharge on income over $1M in 2023 (the "Fair Share Amendment"), bringing the top rate to 9%. For most prediction market traders with profits under $1M, the effective rate is 5%: moderate and predictable. Event contract profits are ordinary income for MA state tax purposes.
Other states
New York
MA's neighbor: went further with an executive order and Polymarket blocked. MA is watching the NY situation closely.
CTConnecticut
New England neighbor with legal sports betting. Similar caution status as MA: Gaming Control Board monitoring.
Open · TXTexas
The contrast: no state income tax, no enforcement, full access. What MA could be if regulators stood down.