Prediction Markets
in North Dakota
North Dakota is fully open for prediction markets with one of the lowest state income tax rates in the country at just 2.5% flat. All major platforms are available with no enforcement actions. North Dakota does not have legalized sports betting as of 2026, but CFTC-regulated prediction markets operate independently under federal jurisdiction: and with a 2.5% state rate, the after-tax math strongly favors ND residents over high-tax states.
Which platforms work in North Dakota?
All categories available in North Dakota. No state-level restrictions.
Polymarket QCEX available in North Dakota. Apply via the national waitlist.
Both Mana and Sweepcash available in North Dakota.
CFTC no-action letter. US politics only, $850 cap. Available in ND.
All prediction market contracts available in ND.
2.5% flat rate — among the lowest in the US
North Dakota cut its income tax rates dramatically in recent years, landing at a flat 2.5% for most taxpayers. For prediction market traders, this means state tax on $10,000 net profit is just $250: compare that to $985 in Minnesota, $990 in Oregon, or $875 in Vermont. Combined with the 22% federal rate, ND residents in the middle bracket pay 24.5% total versus 31.9% for a Minnesota resident.
Kalshi issues a 1099-MISC for net profits. Report on your North Dakota state return as ordinary income. OBBBA 90% loss cap applies only to sports betting losses: Kalshi prediction market losses are not capped.
North Dakota vs the region
South Dakota
No state income tax at all: ND's neighbor and the benchmark for tax-favorable prediction market trading in the Plains.
Neighbor stateMinnesota
Open status but up to 9.85% income tax: nearly 4× North Dakota's rate. Strong case for border-area residents.
Neighbor stateMontana
Open status, 5.9% top rate. Sports betting legal since 2019 (Montana Lottery operated).