Best Texas prediction market sites
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- Kalshi Sports Benefits
- Legal sports trading in most states
- Best NFL liquidity
- Excellent mobile app
- Kalshi Promo Code
1-3 days
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- Polymarket Benefits
- Deep NFL market selection
- Excellent for price shopping
- Fast payouts
- Polymarket Promo Code
1-3 days
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- Novig Benefits
- Sports-focused platform
- Low-friction trading
- Share with friends
- Novig Promo Code
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- ProphetX Benefits
- Seamless exchange-style trading
- Great NFL player props
- Custom prices on request
- ProphetX Promo Code
0-2 days
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- Fewer details
- Underdog Benefits
- Quick and secure withdrawals
- Clear probability pricing
- Simple, sports-first Prediction Picks
- Underdog Promo Code
24 hours
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- FanDuel Predicts Benefits
- Beginner friendly betting model
- Event contracts for variety of sports
- Established brand
- FanDuel Predicts Promo Code
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- Gemini Benefits
- Futures markets available
- User-friendly interface
- Infographics provided for each market
- Gemini Predictions Promo Code
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- OG Benefits
- Offers margin trading
- Wide variety of sports event contracts
- Dedicated parlay builder
- OG Promo Code
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- Fewer details
- Plus500 Benefits
- Ultra-low trading costs
- Simple Yes/No contracts
- Broad market variety
- Plus500 Promo Code
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- More details
- Fewer details
- Crypto.com Benefits
- Shared ecosystem
- Excellent on mobile
- Market-leading security
- Crypto.com Referral Code
Are prediction markets legal in Texas?
Yes, prediction market apps are legal in Texas, while traditional sports betting remains illegal and elusive.
Platforms like Kalshi and Polymarket are regulated federally by the Commodity Futures Trading Commission rather than by Texas gambling authorities. Instead of betting against the house, users buy and sell event contracts with other traders, making the system closer to financial markets than sportsbooks.
The regulatory outlook is uncertain at this stage, amidst efforts to formally regulate and legalize Texas sports betting. Some states and tribal groups argue that prediction markets exploit a legal loophole to offer gambling-like products, hinting at how future legal challenges could affect their availability.
Texas prediction market apps reviewed
Since Texas prediction markets can operate legally, residents have access to multiple platforms and prediction market promos. With a population of over 30 million and a strong sports culture, the state is a major market for event trading. We've vetted some of the top prediction market platforms available to Texans.
Explore our favorite TX prediction markets below:
- Kalshi - Best Texas prediction market app
- Polymarket - Best for trending predictions
- Novig - Best for low-friction trading
- ProphetX- Best for price-conscious traders
- Underdog - Best for streamlined prediction trading
- FanDuel Predicts - Best for beginners
- Gemini - Best for fee-conscious traders
- OG.com - Best margin trading
- Plus500 - Best for low-cost trading
- Crypto.com - Best crypto prediction app
1. Kalshi - Best Texas prediction market app
Is Kalshi legal in Texas? Yes. Kalshi is one of the most popular prediction market platforms available to Texans, allowing users to buy and sell event contracts on real-world outcomes. Regulated by the CFTC, the platform offers the 'Exclusive $60 Bonus' sign-up offer to eligible new customers who use the Kalshi promo code MAX60 and accepts minimum deposits of just $10 in either fiat or crypto.
Kalshi also features sports markets involving teams like the Dallas Cowboys, along with markets on politics, breaking news, culture, and more, making it an accessible option for beginners exploring event contract trading.
Kalshi at a glance
|
Kalshi |
|---|---|
| Kalshi sign-up bonus | Exclusive $60 Bonus |
| Kalshi promo code | MAX60 |
| Top feature | Legal sports trading |
| Minimum deposit | $10 |
| Eligible states | All states + DC (excluding NV and WA) |
| Legal age | 18+ |
| Kalshi mobile app | iOS & Android |
Check out our full Kalshi review to discover why it’s one of the leading prediction market apps in 2026 and how to use the Kalshi promo code MAX60. Our Kalshi referral code page has everything you need to know about other potential rewards.
Kalshi responsible gaming Certain limitations apply. The offer is available to new users only, subject to the terms and conditions at http://kalshi.com/tc/55. 18+ only. Restrictions and eligibility requirements apply. Event contract trading involves significant risk and is not appropriate for everyone. Please carefully consider if it is appropriate for you in light of your personal financial circumstances. Kalshi products are not available in all jurisdictions. See kalshi.com/regulatory for more information.
2. Polymarket - Best for trending predictions
Polymarket is now available nationwide as one of the most anticipated Texas prediction market apps of 2026, and users can get access with the invite code COVERS. Known as the “world’s largest prediction site,” Polymarket has a strong international footprint and a crypto-focused platform that supports a wide range of cryptocurrencies, with the option to buy crypto on-site using Visa or Mastercard.
The platform offers simple “Yes” or “No” contracts on trending stories, breaking news, crypto developments, major events, and even more sensational or controversial topics, making it appealing to both data-driven traders and casual sports bettors.
Polymarket at a glance
|
Polymarket |
|---|---|
| Polymarket sign-up bonus | Deposit $10, Get $25 Bonus |
| Polymarket promo code | Invite code: COVERS |
| Top feature | Trade real-world events instantly |
| Minimum deposit | As little as $10 |
| Eligible states | All states + DC (Excluding Nevada) |
| Legal age | 18+ |
| Polymarket mobile app | iOS & Android |
| Offer expiry | Ongoing |
Our exhaustive Polymarket promo code page details everything about this industry leader. You can also check out our Polymarket review, as well as the definitive Polymarket vs. Kalshi guide page to see which prediction site is right for you in 2026. I break down the full refer-a-friend offer in our Polymarket invite code guide.
Polymarket responsible gaming 18+ Only. Restrictions and eligibility requirements apply. Not available in all jurisdictions. Trading is risky. 100% loss can occur. See https://polymarket.com/tos for more information. The Polymarket US App serves as an independent software provider and affiliate of Polymarket US and Polymarket Clearing, the CFTC-regulated exchange and clearing organization.
3. Novig - Best for low-friction trading
Novig’s sports-focused prediction market model is a strong fit in Texas, where sports fandom is enormous and traditional online sports betting access remains more limited than in many other major states. Texas has one of the country’s biggest sports audiences, from NFL and college football to NBA, MLB, soccer, combat sports, and racing, which makes it a natural market for a platform built around sports predictions.
Novig’s advantage over Polymarket and Kalshi is focus. Polymarket covers a wide range of events, and Kalshi has a more formal event-contract structure. Novig is easier to explain to a Texas sports fan: it is a sports-first trading platform where users can make predictions, compare prices, and choose whether to take a market or set their own.
For Texas users, the appeal is that Novig feels closer to sports culture than financial trading. The Deposit $10, Get $50 offer gives new users a lower-cost way to learn the app and see how sports prediction markets work. That makes Novig’s Texas pitch straightforward: it is for fans who want a more active, price-focused way to engage with sports outcomes, without the product feeling like a generic exchange or crypto marketplace.
Novig at a glance
|
Novig |
|---|---|
| Novig sign-up bonus | Deposit $10, Get $50 |
| Novig promo code | COVERS |
| Top feature | Sports-focused trading |
| Minimum deposit | $10 |
| Eligible states | 47 states + DC (excluding AZ, MI, NV) |
| Legal age | 21+ |
| Novig mobile app | iOS & Android |
| Offer expiry | Ongoing |
Use the Novig promo code COVERS to activate the welcome offer. You can also compare Novig with other prediction exchanges in my guide to the best apps like Novig. If you’re deciding between two of the best platforms, our Kalshi vs Novig guide breaks down the key differences.
4. ProphetX - Best for price-conscious traders
ProphetX is one of the more intriguing prediction markets on my radar in Texas, especially for anyone who treats line shopping like part of the weekly routine. Use code COVERS to check out a sports-first exchange that leans into peer-to-peer pricing instead of the standard sportsbook setup. Rather than being stuck with the number a book decides to post, ProphetX gives users a marketplace where they can trade with other users, hunt for stronger lines, and post their own prices.
That is the part that should catch the attention of sharper Texas sports fans: fewer traditional middleman mechanics, more flexibility, and a format built for people who know that getting the right number matters. With ProphetX entering the federally regulated sports prediction market, it has become a name worth watching for users seeking a more exchange-style approach to sports pricing.
ProphetX at a glance
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ProphetX |
|---|---|
| ProphetX sign-up bonus | Trade $50, Get $75 |
| ProphetX promo code | COVERS |
| Top feature | Exchange-style |
| Minimum deposit | $10 |
| Eligible states | All states + DC |
| Legal age | 18+ |
| ProphetX mobile app | iOS & Android |
| Offer expiry | Ongoing |
For further research into the newest prediction market, check out our ProphetX promo code page.
5. Underdog - Best for streamlined prediction trading
Underdog stands out in Texas for making sports prediction markets feel straightforward and familiar. Rather than working through a traditional exchange-style order book, I can find a Prediction Pick, see what the contract costs and what it could return, and take a position with minimal friction.
The platform is particularly appealing if, like me, you mainly care about sports. Available markets can include game winners, spreads, totals, futures, and player outcomes, while Underdog can surface contracts from UDX and partner exchanges within the same experience.
I also like having Prediction Cash Out as an option on eligible markets when liquidity allows. Between the sports-heavy selection, multi-exchange access, and easy-to-use interface, I rate Underdog best for sports-first prediction trading in Texas.
Underdog at a glance
|
Underdog |
|---|---|
| Underdog sign-up bonus | Play $5, Get $100 in Bonus Entries |
| Underdog promo code | COVERS |
| Top feature | Multi-exchange access |
| Minimum deposit | $10 |
| Eligible states | AL, AK, AR, CA, CT, DE, FL, GA, HI, ID, IL, IN, IA, KS, LA, ME, MN, MO, MT, NE, NH, NM, NY, NC, ND, OK, OR, RI, SC, SD, TX, UT, VT, VA, WA, WV, WI, WY, DC |
| Legal age | 18+ |
| Underdog mobile app | iOS & Android |
| Offer expiry | Dec. 31, 2026 |
| Last tested | Oct. 16, 2026 |
Have a look at our Underdog promo code page for more details.
Underdog responsible gaming Must be 18+ (19+ in AL, NE; 19+ in CO for some games; 21+ in AZ, MA, and VA) and present in a state where Underdog Fantasy operates. Terms apply. Offer not valid in MD, MI, NJ, NY, OH, and PA. Concerned with your play? Call 1-800-MY-RESET or 1-800-GAMBLER or visit www.ncpgambling.org; AZ: 1-800-NEXT-STEP (1-800-639-8783) or text NEXT-STEP to 53342; NY: Call the 24/7 HOPEline at 1-877-8-HOPENY or Text HOPENY (467369).
6. FanDuel Predicts - Best for beginners
FanDuel Predicts is one of the newest prediction market platforms available in Texas, offering a standalone, easy-to-navigate app separate from FanDuel’s sportsbook and casino. Leveraging the familiarity of its sister sites, the app provides access to major markets like sports, economics, finance, and commodities, with a similar design, customer support, and banking options. Seamlessly operating in all 50 states, FanDuel Predicts is highly rated and a top choice for users seeking a sports-betting-like experience in Texas.
FanDuel Predicts at a glance
|
FanDuel Predicts |
|---|---|
| FanDuel Predicts sign-up bonus |
Trade $5, Get $100 in Predicts Bonuses Offer only valid in AK, AL, CA, DE, FL, GA, HI, ID, MN, ND, NE, NM, OK, RI, SC, SD, TX, or UT |
| FanDuel Predicts promo code | Applies automatically |
| Top feature | Fully integrated platform |
| Minimum deposit | $5 |
| Eligible states | All 50 states plus D.C. (sports trading available in 18 states) |
| Legal age | 18+ (19 or 21 in some) |
| FanDuel Predicts mobile app | iOS & Android |
| Offer expiry | Oct. 20, 2026 |
Explore more in our comprehensive FanDuel Predicts promo code page, as well as our Polymarket vs. FanDuel Predicts guide.
FanDuel Predicts responsible gaming Restrictions and eligibility requirements apply. The offer is available to new users only, subject to the terms and conditions specified by FanDuel Predicts. 18+ only. Event contract trading involves significant risk and is not appropriate for everyone. Please carefully consider if it is appropriate for you in light of your personal financial circumstances. FanDuel Predicts products are not available in all jurisdictions.
7. Gemini - Best for fee-conscious traders
Gemini is an interesting Texas prediction market option because it feels built for users who want more than a simple sports pick. I can trade Yes/No contracts across sports, politics, economics, crypto, weather, tech, business, and culture, while tools like limit orders, an order book, and API access make the experience feel closer to trading than casual predictions.
That wider lens works well in Texas. A user might be following Cowboys futures, Astros or Rangers markets, Mavericks and Rockets storylines, Texas Longhorns or Texas A&M football, energy headlines, election markets, or major weather events. The best Gemini Predictions promo code offer applies automatically, so eligible new users can claim the 'Up to $100 Trade Match' offer without entering a code.
Gemini is still building its prediction-market depth compared with Kalshi and Polymarket, but its low-fee angle gives it a useful lane for Texas traders who care about price, timing, and order control. Liquidity Rewards, Taker Rewards, maker incentives, and promotional fee savings make Gemini feel less like a one-note prediction app and more like a platform for users who want to trade opinions with a bit more precision.
Gemini at a glance
|
Gemini |
|---|---|
| Gemini sign-up bonus | Up to $100 Trade Match |
| Gemini promo code | Automatically applies |
| Top feature | Low fees |
| Minimum deposit | $10 |
| Eligible states | All 50 states + DC |
| Legal age | 18+ |
| Gemini mobile app | iOS & Android |
| Offer expiry | Sept. 30, 2026 |
| Last tested | Oct. 16, 2026 |
Check out our Gemini promo code page for a closer look at the latest offer.
8. OG.com - Best for margin trading
OG.com, which was launched by Crypto.com in 2026, is a prediction market platform where users can trade on real-world outcomes across sports, politics, culture, and finance. The platform offers binary “yes” or “no” contracts, allowing traders to predict event outcomes. These contracts range from $0.01 to $1.00. Correct predictions settle at $1.00, while incorrect ones settle at $0.00.
OG.com offers sign-up bonuses, unrestricted binary contract trading, social features like leaderboards, and the ability to create parlays. It plans to introduce margin contracts and leverage Crypto.com partnerships for exclusive perks.
OG.com at a glance
|
OG.com |
|---|---|
| OG.com sign-up bonus | Trade $10, Get $10 Bonus |
| OG.com promo code | COVERS |
| Top feature | Margin trading |
| Minimum deposit | $10 |
| Eligible states | All states except NY and AZ (users in IL, MA, MD, MI, NJ, NV, and OH are also not permitted to trade sports contracts) |
| Legal age | 18+ |
| OG.com mobile app | iOS & Android |
| Offer expiry | Dec. 31, 2026 |
Read our OG.com promo code page for an in-depth look at one of the industry's newest prediction market bonuses. OG is undoubtedly one of the best alternative apps like Kalshi.
OG.com responsible gaming Campaign period: Extended. The promotion expires seven days after account verification, and only events settled within this seven-day window are eligible. Each qualifying trade must be worth at least $10 and have a probability below 80%. Trades at or above 80% probability will not count. Trades are counted only after they have settled, and trades placed using rewards are not eligible.
9. Plus500 - Best for low-cost trading
Plus500 stands out to me in Texas for keeping prediction-market trading simple, affordable, and varied. I can pick a Yes or No outcome, review the price in cents, and understand the potential return without working through a complicated trading screen.
There’s much more than sports to choose from. Plus500 gives me access to markets across politics, crypto, economics, financial events, technology, entertainment, and major global stories, which keeps the platform interesting year-round.
The feature I appreciate most is Plus500’s $0.01 commission per contract per side. It's an especially attractive setup when I want to start with smaller trades or explore several markets instead of putting everything behind one prediction.
I think Plus500 works particularly well for Texas users who want low-cost prediction trading with an easy learning curve and broad selection of real-world events.
Plus500 at a glance
|
Plus500 |
|---|---|
| Plus500 sign-up bonus | Trade $10, Get $20 Bonus |
| Plus500 promo code | COVERS |
| Top feature | Low-cost trading |
| Minimum deposit | $10 |
| Eligible states | Eligible supported locations |
| Legal age | 18+ |
| Plus500 mobile app | iOS & Android |
| Offer expiry | Ongoing |
| Last tested | Oct. 16, 2026 |
Explore our Plus500 promo code page to dive into the minute details.
10. Crypto.com - Best crypto prediction market app
The Texas prediction markets on Crypto.com are just one part of the story, which is an all-in-one platform for cryptocurrency investments, crypto banking, and other digital services. It has the least variety of any prediction market on this page, focusing primarily on sports markets for now.
It does have one of the best welcome offers, however, worth up to $50, and ongoing crypto bonuses when you hit certain trading milestones. Despite lacking political and entertainment markets, Crypto.com is the natural choice for crypto users and anyone interested in digital assets and investments.
Crypto.com at a glance
|
Crypto.com |
|---|---|
| Crypto.com sign-up bonus | Unlock $50 Bonus |
| Crypto.com referral code | Applies automatically |
| Top feature | Legal sports trading |
| Minimum deposit | $10 |
| Eligible states | Most states + DC |
| Legal age | 18+ |
| Crypto.com mobile app | iOS & Android |
| Offer expiry | Ongoing |
Our Crypto.com review outlines everything you need to know about the Crypto referral code offer. The operator makes our list of the best alternative apps like Polymarket.
How to trade prediction markets in Texas
Signing up for an account with one of the Texas prediction market platforms is a breeze, regardless of which you choose. Here are the steps involved:
Choose a prediction market platform
First, identify a platform that meets your needs. That means offering the specific markets you are interested in, banking methods that work for you, and software that you find fun and easy to use. It’s always worth looking out for potential welcome offers, too. Check out our Kalshi promo code page, for instance.
Complete identity verification
All legit prediction markets require you to verify your identity, either right away on sign-up or later when you make a trade or a withdrawal. You’ll likely need to send a copy of your passport or another form of government identification, take a selfie, and possibly provide additional supporting documentation. The process is similar to KYC at online sportsbooks.
Enter a promo code
Depending on the platform, you may need to enter a promo code to claim a welcome bonus, similar to sportsbook promos, either during registration or later in your account or in the cashier. You’ll also need to follow the other bonus requirements, such as making a qualifying deposit or completing a certain number of eligible trades.
Fund your account
Texas prediction markets accept a variety of payment methods, including credit and debit cards, ACH bank transfers, Venmo, and crypto. Deposits are processed instantly, so you should be able to start trading right away.
Start trading event contracts
Trading in prediction markets is based on event contracts, priced between $0.01 and $1.00. Buying some contracts is as simple as clicking the outcome you want and entering the amount you want to invest. Once you’ve bought your contracts, you can either wait until the event happens or sell them in advance. Successful predictions are paid out at $1 per contract, while unsuccessful ones are worthless.
Withdraw earnings
To withdraw, go to the cashier, select 'Withdraw,' enter the amount, choose your banking method, and click “Confirm.” Most top prediction market sites process withdrawals within an hour, and all should complete them within 24 hours.
Upcoming sports events to trade on
Texas prediction markets offer sports-related contracts, and for good reason. There is strong demand because sports betting isn’t legal in the state.
The available sports markets reflect a busy stretch in the calendar, with Week 6 NFL prediction markets, college football, NBA preseason and early-season markets, and Texas soccer clubs giving users plenty of local events to follow.
| Sport | League | Event | Date |
|---|---|---|---|
| Football | NFL | NFL Week 6: Houston Texans at Jacksonville Jaguars |
Sunday, Oct. 18, 2026 |
| Football | NFL | NFL Week 6: Dallas Cowboys at Green Bay Packers |
Sunday, Oct. 18, 2026 |
| Football | CFB (SEC) | Texas Longhorns vs. Florida |
Saturday, Oct. 17, 2026 |
| Basketball | NBA | Dallas Mavericks, Houston Rockets, and San Antonio Spurs markets |
Current-October 2026 |
| Soccer | MLS | FC Dallas, Austin FC, and Houston Dynamo regular season |
Current-Nov. 7, 2026 |
Prediction markets vs. sports betting in Texas
While prediction markets and traditional sports betting may seem similar, they operate under different models in Texas, including how markets work, how prices are set, and how platforms earn revenue.
🤝 Market structure: peer-to-peer vs. the house
Prediction markets are peer-to-peer, allowing users to trade event contracts directly with one another. Each position usually has an opposite counterpart, and the platform only facilitates trades without setting prices. In contrast, sportsbooks have you betting against the operator, complete with Texas sportsbook promos that set, monitor, and adjust odds to manage risk and profitability.
📊 How market prices are determined
For Texas prediction markets, prices move with supply and demand, reflecting the market’s collective view of an outcome’s likelihood. Sportsbooks, however, set odds using internal models, with only minor adjustments from betting activity.
💰 How platforms make money - Revenue models
Prediction platforms earn via small transaction fees on trades, while sportsbooks build in a margin, or “vig,” to guarantee profit regardless of results.
🔄 Trading flexibility and legality
Prediction markets allow buying and selling contracts before and during events, offering early exit options. Sports bets usually require waiting for the final outcome. Legally, prediction markets operate in Texas under federal regulation, while traditional sports betting remains restricted, even though popular sports outcomes are still widely covered.
What prediction markets can Texans trade?
Texans can trade event contracts across various markets. Each platform delivers a slightly different experience, but in general, the following markets are available at most:
🏈 Sports prediction markets
Nearly 50% of Texans think sports betting should be legalized in their state, so you shouldn’t be surprised to see sports markets dominate Texas prediction markets. They fill the gap created by Texas lawmakers’ unwillingness to pass legislation legalizing sports betting.
When you trade sports contracts, you generally answer simple “yes” or “no” questions about an upcoming sporting event. Think NBA prediction markets like “Will the Houston Rockets beat the Dallas Mavericks?” or “Will Cooper Flagg score 15 points or more against the Houston Rockets?”
After you buy your contracts, you can wait until the event takes place and receive $1 per share. Alternatively, you can sell your position early if your opinion or the market changes in your favor. Texans have access to tons of U.S. and international sports, from the NFL and NBA to the Olympics and the Premier League.
Best platform for sports predictionsFanDuel Predicts is our top pick for sports fans. It has plenty of sports markets, and its user-friendly interface and mobile app do a great job of breaking down the process for beginners. Plus, FanDuel has a certain amount of brand loyalty.
🗳️ Political and election markets
Political elections in Texas typically take center stage at both the state and federal levels, resulting in an uptick in political and election markets on platforms. Interest around political betting sites has grown significantly, alongside media coverage examining how markets are affecting election results. Many news outlets paid close attention to political prediction markets available on platforms in the lead-up to the recent Texas Senate races.
Best platform for political predictions Polymarket tends to have the most up-to-date markets on politics and world events, especially in its popular “Trending” section.
📊 Economic indicator markets
Economic indicators have become hot topics in Texas and across the country, with people paying close attention to everything from the gross domestic product (GDP) to the Federal Reserve’s interest rates.
If economic indicators are always on your mind, you can buy and sell contracts related to them. For example, you can buy “yes” or “no” contracts that answer questions like, “Will the unemployment rate reach [percentage] by [date]?”
Best platform for economic predictionsKalshi offers a solid selection of economic markets, a clean, easy-to-use interface, and built-in price-tracking software that helps you analyze economic indicators.
🪙 Cryptocurrency price predictions
Texas is considered a major cryptocurrency hub, so it’s only right that platforms take notice and offer markets based on crypto price predictions. These markets normally focus on whether certain coins will hit a specific price by a given date. There are also markets on crypto news and current events, like whether Trump will create a National Bitcoin Reserve.
Best platform for crypto predictions Polymarket currently offers the most Texas crypto prediction markets. Although it’s mostly focused on sports markets for now, Crypto.com is another natural choice for crypto users, offering a wide range of features beyond prediction markets, from crypto banking to wallet management.
🎬 Entertainment and culture markets
Everything is bigger in Texas, as they say, including the state’s entertainment scene. From Arlington, the so-called “Entertainment Capital of Texas,” to Austin, the "Live Music Capital of the World,” Texas is a real cultural hub.
Texas prediction markets let you buy contracts on everything from the top-streamed songs on Spotify in a given week and Academy Award winners via Oscars betting sites to the latest changes in celebrity love lives.
Best platform for entertainment and culture predictionsKalshi lets Texans dive into the hottest pop culture trends, from blockbuster movies and viral moments to upcoming award shows and major cultural milestones.
Texas-specific rules for prediction markets
Texas prediction markets are legal, though they operate in a legal gray area. Since there aren’t any specific laws permitting these platforms in the state, it's possible their future could be called into question at any time.
Still, prediction markets have their own rules for users in Texas who wish to access the platforms.
Age requirements: You must generally be at least 18 to register with Texas prediction market platforms, though that rule could become a bigger policy fight. In July 2026, the Texas Medical Association called for a 21+ minimum age for prediction markets, citing concerns about gambling-related harm among young adults.
Tax treatment of earnings: You need to report any profits earned through Texas prediction markets as ordinary income, investment income, and/or capital gains income on the federal level. However, one of the biggest benefits of using these markets in Texas is that it has no state income tax.
Understand the potential risks of Texas prediction markets
Even though prediction markets operate differently from sports betting sites, many of the same risks are present in both. Before trading contracts through Kalshi, Polymarket, Crypto.com, FanDuel Predicts, or another platform, review these potential risks:
- Ever-changing landscape: Laws regarding Texas prediction markets may change at any time. We recommend keeping an eye on this page for the latest developments.
- Choose a solid community: event contract prices change frequently. On platforms with fewer users, the prices can change more drastically, making it harder to buy and sell contracts at predictable prices. Deeper markets with lots of active users are better.
- Find a prediction market that suits your needs: It goes without saying that you can easily lose money using prediction markets. Set a budget for your trading and don’t invest any money you aren’t prepared to lose. Ultimately, prediction markets exist as a form of entertainment; they aren’t a get-rich-quick hack.
How Texas compares to neighboring states
Texas is bordered by New Mexico, Oklahoma, Arkansas, and Louisiana. Each takes a different approach to dealing with prediction market platforms.
New Mexico has not always looked favorably on sports betting, as it’s only legal at certain tribal casinos. Yet, it has done little to deter prediction market platforms from operating within its borders so far.
Oklahoma has been much more vocal about its problems with prediction market platforms. State lawmakers have been pushing Senate Bill 1589 (SB 1589) to make these platforms illegal, and so far, it has passed with little pushback.
Arkansas is another state that has been against allowing prediction market platforms to operate. While the Arkansas Attorney General has recently changed its stance on sports betting, it has referred to prediction markets as a form of illegal gambling.
Louisiana is in the same boat as Arkansas. The Louisiana Gaming Control Board has equated prediction markets with unlicensed sports wagering and has sought to eliminate platforms that offer event contracts in the state.
On the West Coast, California prediction markets are readily available to traders in the Golden State.
The regulatory landscape for prediction markets
Prediction markets are regulated at the federal level by the CFTC. However, that’s only half the story. Various states have taken legal action against prediction markets, arguing that they should be treated as gambling platforms and regulated as such.
For now, Texas Attorney General Ken Paxton has spoken out specifically about prediction markets, but he declared daily fantasy sports (DFS) illegal in 2016 and doesn’t appear to have changed his stance on any form of gambling.
Additionally, tribal gaming groups have spoken out against prediction market platforms on both the state and federal levels. Most notably, the Indian Gaming Association and the National Congress of American Indians have accused these platforms of using legal loopholes to offer sports betting to those in states where online gambling is illegal.
It hasn’t all been plain sailing between prediction platforms and the CFTC, either. In 2022, the CFTC took legal action against Polymarket, fined the platform $1.4 million, and required it to cease operations in the U.S. for a period of time. It returned in 2025 after acquiring the CFTC-registered QCEX. Still, the incident shows that the landscape is far from certain.
Texas prediction market recent updates
July 7, 2026: The Texas Medical Association called on state lawmakers to establish a 21+ minimum age for prediction markets, citing concerns about gambling-related harm among young adults. No new Texas age restriction has been enacted.
June 16, 2026: Novig secured CFTC approval, giving the sports-first platform a path to operate as a federally regulated prediction market.
June 12, 2026: ProphetX received federal prediction-market approval, adding another sports-native exchange to watch in states like Texas.
June 10, 2026: The CFTC proposes new prediction market rules that appear to support many sports-related event contracts while adding limits around certain higher-risk markets.
May 6, 2026: Texas Lt. Governor Dan Patrick wants to close the prediction market 'loophole' in Texas.
March 9, 2026: Underdog poised to offer event contracts after acquiring Aristotle’s CFTC-regulated exchange and clearinghouse licenses.
Jan. 15, 2026: FanDuel launches prediction markets in Texas featuring FanDuel Predicts, with sports event contracts offered in 18 of those jurisdictions.
Are prediction markets worth trying in Texas?
Prediction markets may be worth exploring in Texas for informed users who understand trading risk, but they should not be treated as a settled substitute for sports betting. Many platforms operate under federal frameworks such as CFTC oversight, while Texas has not created a state-specific prediction-market licensing system.
In a state as sports-crazy as Texas, where regular online sports betting or real money Texas online casinos are not legal, prediction markets can offer another way to trade on sports and real-world outcomes. They also offer markets on a wide range of non-sports topics, from politics to pop culture.
It’s also important to understand that the laws and regulations governing prediction markets are not set in stone, and it’s possible that Texas may, at some point, take steps to limit access. For now, they are best viewed as an option for users who understand the legal uncertainty, platform rules, and financial risk involved.
More state prediction markets
Texas prediction markets FAQ
Yes, prediction markets are legal in Texas. They operate in a gray area, though, so the future of Texas prediction markets is still uncertain.
Yes, Texans can legally trade sports prediction markets, despite sports betting not being legalized in the state. The two types of platforms operate under different regulations.
No, prediction markets are not the same as sports betting. Prediction markets let you trade event contracts against other users of the exchange. Sportsbooks accept action directly from bettors, at odds that they set and move however they want.
Yes, winnings from prediction markets are taxed in Texas. However, Texas does not have state income tax, so you won’t be taxed as heavily as you would be in other states. You will only be taxed for prediction market winnings on the federal level.
You need to be 18 years old to use Texas prediction markets.
