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Is Kalshi legal in Texas? Is Polymarket? Yes, sports included: what Texans can trade (2026)

Kalshi is available in Texas, sports contracts included, even though sports betting is illegal there. Why Texas has not moved against it, the push for a 21+ age limit, Polymarket US, and why Texans pay no state tax on winnings.

RDResearch desk21 Oct 2026 · 3 min read

Yes, Kalshi is legal to use in Texas, and Texans can trade sports contracts on it. Texas has no legal sports betting, but Kalshi operates as a federally regulated exchange, and as of October 2026 Texas had taken no enforcement action against it.

That makes Texas one of the largest markets where a federally regulated prediction market is the only regulated way to trade on a football game.

As of 21 October 2026. The Kalshi app checks your location and shows only what you can trade.

Kalshi in Texas at a glance

Status in Texas
Kalshi Available, sports contracts included
Polymarket US Listed as available by trackers; check the app
Online sportsbooks Illegal
Minimum age on Kalshi 18
State income tax on winnings None

Why Texas has not acted

Most of the states fighting Kalshi already license sportsbooks and see event contracts as unlicensed competition. Texas has no sportsbooks to protect, and its attorney general, Ken Paxton, long a hard-liner on gambling, has stayed out of the multistate campaign against prediction markets: he did not join the 2026 amicus briefs that dozens of attorneys general filed against Kalshi.

Federal election filings show Kalshi and its executives gave at least $22,600 to Texas candidates and committees since 2025, with Paxton the largest recipient. Paxton is also the Republican nominee in the 2026 Senate race, one of the most-traded races on Kalshi (Texas Senate odds).

Risks to watch

  • Age: in July 2026 the Texas Medical Association pushed for tighter safeguards on prediction markets, including a possible 21+ age limit and advertising limits.
  • Federal courts: appeals courts are split on whether states can regulate sports event contracts. If the Supreme Court takes the question, its answer would apply to Texas too (is Kalshi legal?).
  • The legislature: Texas lawmakers have repeatedly debated sports betting; a new law could also address prediction markets.

What Texans can trade

  • Sports: NFL, college football, NBA, MLB and more, including game winners, totals and championships (Super Bowl odds; World Series odds).
  • Politics: the Texas Senate race, the governor's race and national control of Congress (2026 election odds).
  • Economics and weather: Fed decisions, inflation, daily highs in Houston, Dallas and Austin.

Polymarket in Texas

The global Polymarket site does not accept US users. Polymarket US, the CFTC-regulated app, is listed as available in Texas by trackers; check the app (how to use Polymarket in the US).

Taxes for Texans

Texas has no state income tax, so you owe nothing to the state on prediction market profits. Federal tax still applies (Kalshi taxes).

Is Kalshi legal in Texas?
Yes. Kalshi is available in Texas as a CFTC-regulated exchange, and Texas had taken no enforcement action against it as of October 2026.

Can you trade sports on Kalshi in Texas?
Yes, sports contracts are available in Texas, although traditional sports betting is illegal there.

Is Polymarket legal in Texas?
Polymarket US is listed as available by trackers; the global Polymarket site is not open to US users.

Do Texans pay state tax on Kalshi winnings?
No. Texas has no state income tax; federal tax applies.

How old do you have to be to use Kalshi in Texas?
18, although Texas doctors have called for 21 (Kalshi age requirement).

Keep reading

#kalshi#legal#states#texas
RD
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