Prediction Markets
in New Jersey
New Jersey is the most notable sports prediction market restriction in the US: Kalshi and Robinhood sports event contracts are explicitly unavailable to NJ residents, citing the NJ Division of Gaming Enforcement's jurisdiction. Economic, political, and weather prediction markets remain fully accessible. NJ residents looking for sports prediction markets have limited options: Novig's regulatory status in NJ is also uncertain.
Which platforms are available in New Jersey?
| Platform | Status in NJ | Notes |
|---|---|---|
| Kalshi | Partial | Economics, politics, and weather available in NJ. Sports event contracts via Kalshi are NOT available in New Jersey: NJ Division of Gaming Enforcement restriction. |
| Polymarket | Waitlist | QCEX invite-only. New Jersey has not specifically blocked QCEX, but sports contract restrictions likely apply. Economics and politics available. |
| Manifold | Available | Play-money and sweepstakes cash available in New Jersey. |
| PredictIt | Available | CFTC no-action exemption. US politics-only, $850 per contract cap. Available in NJ. |
| Robinhood | Partial | Economic and political contracts available via ForecastEx. Sports contracts via Kalshi are NOT available in New Jersey. |
Why sports prediction markets are blocked in New Jersey
The NJ Division of Gaming Enforcement's position
New Jersey was the state that successfully challenged the federal Professional and Amateur Sports Protection Act (PASPA) before the Supreme Court in 2018, opening the door to legal sports betting nationwide. Ironically, NJ's powerful sports betting regulatory infrastructure (the NJ Division of Gaming Enforcement (DGE)) is now the reason sports prediction markets are blocked for NJ residents.
The DGE classifies sports event contracts as products requiring New Jersey state sports wagering licensing, arguing that the CFTC's federal preemption doctrine does not override the state's legal authority over sports wagering. Kalshi and Robinhood (via Kalshi's DCM) chose to block NJ residents from sports contracts rather than litigate the issue directly in New Jersey, at least for now.
What's available and what's blocked
The NJ DGE's objection is specifically to sports event contracts. Kalshi's non-sports categories (economics (Fed rate decisions, CPI, GDP), politics (elections, presidential approval), and weather) are available to NJ residents without restriction. The federal preemption argument is stronger for economic and political contracts, which are less easily characterized as "sports wagering."
- Sports contracts: Not available via Kalshi or Robinhood. Use NJ-licensed sportsbooks (FanDuel NJ, DraftKings NJ, BetMGM NJ) for sports wagering.
- Economics and politics: Fully available on Kalshi, IBKR/ForecastEx, and Webull. No restrictions on these categories.
- Novig: P2P sports exchange: regulatory status in NJ is uncertain given the DGE's posture. Check novig.us for current NJ availability.
- ProphetX: Available in NJ since NJ has legal sports betting: ProphetX's P2P exchange model operates in legal sports betting states.
The irony of NJ's position
New Jersey has some of the most liberal sports betting laws in the US and the largest sports betting market by handle outside Nevada. NJ residents can bet on sports with FanDuel, DraftKings, Caesars, and dozens of others, but cannot access CFTC-regulated prediction market sports contracts that offer better price transparency and lower effective fees. The restriction is a product of New Jersey's regulatory turf protection, not consumer harm prevention.
New Jersey prediction market tax rates
New Jersey has a graduated income tax with rates from 1.4% (under $20K) to 10.75% (over $1M). For most prediction market traders in the $75K–$500K income range, the effective NJ rate is 6.37%: higher than the national median but significantly below California (13.3%) or New York City combined rates. Event contract profits are taxed as ordinary income at your NJ marginal rate.
1099-MISC reporting applies from Kalshi for economics and politics markets. Losses from event contracts are deductible up to $3,000 federally per year.
Other states
New York
Executive order, NYDFS enforcement, Polymarket blocked. NJ's neighbor: very different regulatory posture despite shared geography.
Open · PAPennsylvania
Full access to all prediction markets including sports. No specific enforcement actions as of May 2026.
Open · TXTexas
No state income tax, no enforcement, full platform access including sports. The contrast to NJ.