Best Texas prediction market sites
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- Kalshi Sports Benefits
- Legal sports trading in most states
- Event trading for niche markets
- Excellent mobile app
- Kalshi Promo Code
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- Crypto.com Benefits
- Shared ecosystem
- Excellent on mobile
- Market-leading security
- Crypto.com Referral Code
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- Underdog Benefits
- Quick and secure withdrawals
- Wide selection of DFS
- Code available for Fantasy
- Underdog Promo 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 prediction market app
- Crypto.com - Best crypto prediction app
- Underdog - Best for pick-em style
- Polymarket- World's largest prediction site
- FanDuel Predicts- Best for beginners
1. Kalshi - Best Texas prediction market app
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 a $10 welcome bonus and accepts minimum deposits of just $1 in either fiat or crypto. Kalshi also features markets across sports, politics, culture, and more, making it an accessible option for beginners exploring event contract trading.
Kalshi at a glance
|
Kalshi |
|---|---|
| Kalshi sign-up bonus | $10 Trading Bonus |
| Kalshi promo code | COVERS |
| Top feature | Legal sports trading |
| Minimum deposit | $1 |
| Eligible states | Most states + DC |
| Legal age | 18+ |
| Kalshi mobile app | iOS & Android |
| Offer expiry | Ongoing |
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 'COVERS'.
2. 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 platforms, 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 | $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.
3. Underdog - Best for pick'em-style predictions
Underdog is a Texas-friendly prediction platform designed for sports fans who enjoy simple, player-focused “pick’em” style markets. Unlike Kalshi or Polymarket, Underdog takes a casual, gamified approach with easy yes/no or over/under predictions on player stats, game outcomes, and props. Its fast turnover, accessible format, and focus on daily player props make it ideal for casual sports interaction rather than professional trading.
Underdog at a glance
|
Underdog |
|---|---|
| Underdog sign-up bonus | Play $5, Get $50 in Bonus Entries (DFS only) |
| Underdog promo code | COVERS |
| Top feature | Legal sports trading |
| Minimum deposit | $5 |
| Eligible states | AK, AL, AR, AZ, CA, CO, FL, GA, IL, IN, KS, KY, MA, MI, MN, MO, MS, NC, ND, NE, NH, NJ, NM, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WI, WV, WY |
| Legal age | 18+ (19+ in AL + NE, 21+ in AZ + MA) |
| Underdog mobile app | iOS & Android |
| Offer expiry | Ongoing |
Explore all the key features and offers associated with the Underdog promo code 'COVERS'.
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. Concerned with your play? Call 1-800-MY-RESET or 1-800-GAMBLER or visit www.ncpgambling.org. NY: Call the 24/7 HOPEline at 1-877-8-HOPENY or Text HOPENY (467369)
4. Polymarket - World's largest prediction site
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Polymarket, expected to launch in Texas soon, is one of the most anticipated prediction market apps of 2026, and users can get early 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 | Coming Soon |
| Polymarket promo code | Invite Code: COVERS |
| Top feature | Trade real-world events instantly |
| Minimum deposit | N/A |
| Eligible states | All 50 states + DC except for AR, AZ, CT, IL, LA, MA, MD, MI, NV, and OH. |
| Legal age | 18+ |
| Polymarket mobile app | iOS & Android |
| Offer expiry | N/A |
Our exhaustive Polymarket promo code page details everything about this industry leader.
5. 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 | Coming Soon |
| 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 | N/A |
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 a strong demand for them because sports betting isn’t legal in the state.
The sports markets available reflect what is shaping up to be another big year in the world of sports, with March Madness betting sites taking center court. Plus, Texas will be hosting games, with the best FIFA World Cup betting sites taking action.
| Sport | League | Event | Date |
|---|---|---|---|
| Basketball | NCAAB | March Madness | March 17-April 6 |
| Basketball | NCAAB | Women’s March Madness |
March 18-April 3 |
| Golf | PGA | The Masters |
April 9-12 |
| Football | NFL | NFL Draft |
April 23-25 |
| Basketball | NBA | NBA Playoffs |
April 18-June 19 |
| Soccer | FIFA | World Cup |
June 11-July 19 |
| Tennis | Tennis | AELTC/LTA |
June 29-July 12 |
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 pricing and odds are determined
In 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 Texas 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 are generally required to answer simple “yes” or “no” questions about an upcoming sporting event. Think “Will the Houston Rockets beat the Dallas Mavericks?” or “Will Cooper Flagg score 15 points or more against the Houston Rockets?”
After you’ve bought your contracts, you can simply 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, there is a certain amount of brand loyalty from the FanDuel sportsbook.
🗳️ 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 election 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 you always have economic indicators 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. Even though it’s mostly focused on sports markets for now, Crypto.com is another natural choice for crypto users, as it offers 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 be at least 18 to register with Texas prediction market platforms.
Tax treatment of winnings: 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 potential risks of Texas prediction markets
Even though prediction markets argue they offer a very different product to sports betting sites, many of the same risks are present in both. Here are some potential risks you should be aware of when using prediction markets: In anticipation of trading contracts through Kalshi, Polymarket, FanDuel Predicts, Crypto.com, or another platform, I strongly recommend understanding the 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 all the time. 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 specifically spoken out about prediction markets, but he declared daily fantasy sports (DFS) illegal back 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. 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
March 14, 2026: Recent developments showcase that the future of prediction markets in Texas is extremely uncertain.
March 9, 2026: Underdog poised to offer event contracts after acquiring Aristotle’s CFTC-regulated exchange and clearinghouse licenses.
March 2, 2026: DraftKings is expanding into Texas with its Sports & Casino app, blending sportsbook and prediction market elements.
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?
Yes, prediction markets are definitely worth trying in Texas. First and foremost, they are currently operating in compliance with U.S. laws and are fully regulated in the U.S., albeit not specifically in Texas.
In a state as sports-crazy as Texas, where regular online sports betting or real money Texas online casinos are not legal, legal prediction markets represent the next best thing. 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. However, for now at least, they are a great option.
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.
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