Are Prediction Markets Legal in New Jersey?

Last updated September 27, 2026. Snapshot — not legal advice.

As of September 27, 2026, prediction markets are operating in New Jersey — a court currently shields platforms from state enforcement, at least preliminarily and pending appeal.

Prediction markets in New Jersey

Protected by injunction

The Third Circuit affirmed a preliminary injunction barring New Jersey from enforcing its gambling law against Kalshi’s sports event contracts (KalshiEX LLC v. Flaherty, April 2026), holding those contracts likely federally-preempted "swaps." The ruling is preliminary, and on September 2, 2026 New Jersey petitioned the Supreme Court for certiorari, asking it to resolve the conflict with the Ninth Circuit’s Assad decision. The injunction remains in force in the meantime. Robinhood Derivatives sued the same regulators in August 2025 and got a consent order barring enforcement against it over Kalshi-traded sports contracts while Kalshi’s appeal ran; that relief was extended in May 2026.

Litigation affecting New Jersey

KalshiEX LLC v. Flaherty (cert. sought sub nom. Flaherty v. KalshiEX, LLC)New Jersey petitioned for certiorari on September 2, 2026, one day before its twice-extended deadline, asking the Supreme Court to resolve a Third/Ninth Circuit split over whether Dodd-Frank preempts state sports-gambling law.

Injunction affirmed; cert petition pending (No. 26-299)

Robinhood Derivatives, LLC v. FlahertyNew Jersey agreed to a consent injunction (August 2025) barring enforcement against Robinhood over Kalshi-traded sports contracts while Kalshi’s appeal ran; extended by consent in May 2026.

Consent injunction bars enforcement; case stayed

Which platforms are available in New Jersey?

Each platform’s own published availability list, checked September 24, 2026. This table covers the platforms whose complete list we could verify from a primary source: Kalshi, Polymarket (international), DKeX (DraftKings Predictions), Underdog (Underdog Predict), Novig.

Platform availability in New Jersey
Platform	Status in New Jersey	Source
Kalshi	Offered here, per the platform’s own availability list	Platform’s list
Polymarket (international)	Unavailable here	Platform’s list
DKeX (DraftKings Predictions)	Offered, with sports restricted	Platform’s list (archived Sep 16)
Underdog (Underdog Predict)	Offered here, per the platform’s own availability list	Platform’s list
Novig	Offered here, per the platform’s own availability list	Platform’s list

Sports betting & gambling in New Jersey

Legal — Online & Retail

Legalized 2018 after New Jersey’s Supreme Court win struck down PASPA; retail and statewide mobile launched 2018 The market is regulated by the New Jersey Division of Gaming Enforcement. Tribal gaming: not a factor.

The federal-vs-state fight

Every entry in this fight turns on the same question: does a prediction-market platform's federal regulation by the CFTC preempt a state's gambling law, or does the state retain authority to restrict it? Courts around the country are answering that question differently — sometimes for the platform, sometimes for the state — and almost every ruling so far is preliminary and under appeal. Treat this page as a snapshot, not a final word.

This page is informational, not legal advice. Nearly every litigation entry referenced here is a preliminary ruling under appeal. Always verify a platform's current, location-specific eligibility directly with the venue before relying on this page.