Prediction Markets
in Pennsylvania
Pennsylvania is one of the most favorable large US states for prediction market trading in 2026. All major platforms are available with no state-level restrictions. The Pennsylvania Gaming Control Board (PGCB) has not taken action against CFTC-regulated prediction markets. The 3.07% flat state income tax is among the lowest of any large state that taxes income at all.
Which platforms are available in Pennsylvania?
| Platform | Status in PA | Notes |
|---|---|---|
| Kalshi | Available | CFTC-regulated DCM: fully available in Pennsylvania. No state-level restrictions documented as of May 2026. |
| Polymarket | Waitlist | QCEX invite-only. Pennsylvania has not blocked QCEX. Join waitlist at polymarket.com. |
| Manifold | Available | Play-money and sweepstakes cash available in Pennsylvania. |
| PredictIt | Available | CFTC no-action exemption. Politics-only, $850 per contract cap. Available in PA. |
| Robinhood | Available | Sports and economic event contracts fully available in Pennsylvania. |
Pennsylvania: an open state with active sports betting context
Pennsylvania legalized sports betting in 2018 and has one of the highest-volume regulated sports wagering markets in the US. The Pennsylvania Gaming Control Board (PGCB) regulates sports betting through licensed operators. Despite this regulatory apparatus, the PGCB has not taken action against CFTC-regulated prediction market platforms as of May 2026.
Pennsylvania's regulatory environment mirrors New Jersey in having a strong incumbent sports betting industry, but unlike NJ, Pennsylvania has not restricted Kalshi sports contracts. The CFTC federal preemption argument appears to be accepted de facto by Pennsylvania regulators, at least for now.
- All major prediction market platforms available: sports, economics, politics
- No enforcement actions from PGCB against prediction markets as of May 2026
- 3.07% flat state income tax: low among large-population states
- Kalshi, Robinhood, ForecastEx/IBKR, Webull all operational
Pennsylvania prediction market tax rates
Pennsylvania's 3.07% flat state income tax is one of the lowest in the US among income-taxing states: lower than neighboring New Jersey (up to 10.75%), New York (up to 10.9%), or Maryland (up to 5.75%). Event contract profits are ordinary income for PA state tax purposes. Kalshi issues 1099-MISC for tax reporting.
Other states
New Jersey
PA's neighbor: sports contracts blocked by NJ Division of Gaming Enforcement. Much higher income tax.
Gray zone · NYNew York
Executive order, Polymarket blocked, 10.9% top rate. A sharp contrast to PA's open, low-tax environment.
Open · OHOhio
Fellow large open state. Graduated tax up to 3.5%. Full platform access, no restrictions.