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The best prediction markets in Texas give the country’s largest sports betting free state a federally regulated way to trade on games, elections and more. Kalshi, Polymarket, DraftKings Predictions and OG Predictive all operate under Commodity Futures Trading Commission oversight, which places them outside the strict gambling ban written into the Texas constitution.
Texas has never legalized retail or online sports betting, despite repeated legislative attempts, which makes it one of the largest untapped sports betting markets in the country. That gap is a major reason prediction markets have grown so quickly among Texas sports fans.
The legal picture is still developing. Lieutenant Governor Dan Patrick has directed a state Senate committee to study what he calls a gambling loophole, with findings expected to inform possible action in 2027. For now, prediction markets remain fully operational across the state.
This guide ranks the top platforms available to Texas residents, breaks down current offers, and explains how prediction markets differ from a traditional sportsbook.
Texas Prediction Markets Overview
| Legal Status |
Contested (available statewide pending legislative review) |
| Federal Regulator |
Commodity Futures Trading Commission (CFTC) |
| Legal Online Sportsbook |
None. Texas has no licensed retail or online sportsbook |
| Platforms Available |
Kalshi, Polymarket, DraftKings Predictions, OG Predictive, Novig |
| Minimum Age |
18 and older (platform dependent) |
| Contract Price Range |
$0.01 to $0.99 per share, settling at $1.00 or $0.00 |
Is Trading Prediction Markets Legal in Texas?
- Legal Status: Contested, with trading currently available
- Federal Regulation: Kalshi, Polymarket, DraftKings Predictions and OG Predictive all operate as CFTC-regulated exchanges or introducing brokers
- State-Specific Dispute: Lieutenant Governor Dan Patrick directed the Texas Senate State Affairs Committee to study how federal law is being used to work around the state’s gambling restrictions
- Sports Contracts Status: Fully available; no lawsuit or enforcement action has been filed against the major platforms in Texas as of August 2026
- Timeline: Committee findings are expected to inform potential legislative action in the 2027 session, meaning no near-term change is expected
Texas broadly prohibits gambling under its state constitution, but sports event contracts have continued operating because they fall under federal commodities law rather than state gaming law. Federal courts have already blocked several other states from enforcing similar restrictions against these platforms, which limits how far Texas could go even after the committee reports back.
For the full state-by-state legal breakdown, see the FOX Sports guide to where prediction markets are legal.
Recent Prediction Market Updates in Texas
- March 2026: Lieutenant Governor Dan Patrick directed the Senate State Affairs Committee to study prediction markets and possible ways to close what he calls a gambling loophole
- Spring 2026: Kalshi and Polymarket removed ad copy in Texas that used direct gambling terminology after local reporting drew attention to it
- 2026: Federal courts blocked several other states from enforcing similar gambling-law restrictions against Kalshi and Polymarket, a precedent likely to shape any Texas proposal
- Committee findings are expected ahead of the 2027 legislative session, with no state action anticipated before then
Best Texas Prediction Market Platforms Ranked and Reviewed
Each platform below is federally regulated and currently accepting new Texas accounts. Offers and terms can change, so confirm current details before funding an account.
Kalshi
Kalshi is the top recommendation for most Texas traders, with the deepest liquidity of any US exchange and a market menu that covers everything from Cowboys game lines to the 2026 Texas governor’s race.
- Best known for: The widest prediction market menu in the US, with the deepest sports, politics, economics, weather and pop culture coverage of any CFTC-regulated exchange.
- Welcome offer: Trade 25 dollars, get up to 500 dollars in bonus trading credit with code FOXSPORTS.
- Platform experience: Clean mobile app, simple KYC verification, and support for debit card, bank transfer, Apple Pay, wire transfer and USDC funding.
- Final take: The default first stop for most traders, especially anyone who wants sports markets alongside politics and economic data in one place.
Kalshi operates as a Designated Contract Market under the CFTC and is currently available to eligible new users with the Kalshi promo code FOXSPORTS offer. Kalshi is also one of the only platforms with enough order flow to support Texas-specific political markets, including statewide primary and general election contracts.
Polymarket
Polymarket is the highest-volume prediction market available to Texas residents, processing billions of dollars in monthly trading across sports, politics and breaking news.
- Best known for: The largest global trading volume of any prediction market, with the deepest liquidity for major sports, political and breaking news events.
- Welcome offer: Deposit 10 dollars, get a 20 dollar trading bonus with code FOX.
- Platform experience: iOS and Android app, USDC-based balances funded through Moonpay via card or bank transfer, and no trading fees on binary markets.
- Final take: The strongest choice for traders who want the widest field of active markets and the tightest spreads on high-volume events.
New users can review current terms on the Polymarket promo code FOX page. Texas ranks among Polymarket’s most active states for college football markets given the size of the state’s Big 12 and SEC fan base.
DraftKings Predictions
DraftKings Predictions gives Texas users a familiar app experience, since it runs inside the same DraftKings Sports and Casino app used nationwide.
- Best known for: Brand familiarity for sportsbook bettors, Combos that bundle multiple event contracts into one position, and a built-in responsible trading toolset.
- Welcome offer: New DraftKings customers who trade 5 dollars or more get 150 dollars in Predictions Dollars, paid out as 50 dollars every 7 days over a 14 day window. No promo code is required.
- Platform experience: Available inside the existing DraftKings Sports and Casino app on iOS and Android, running on DraftKings’ own DKeX exchange.
- Final take: The most natural fit for anyone who already has a DraftKings account and wants event contracts without downloading a separate app.
Full offer terms and state availability are covered on the DraftKings Predictions promo code page. DraftKings has specifically called out Texas as one of its priority states for sports event contracts, since the state has no competing sportsbook product.
OG Predictive
OG Predictive rounds out the field with a newer platform backed by Crypto.com that gives Texas traders another venue for pricing comparisons.
- Best known for: Backing from Crypto.com and infrastructure powered by Nadex, giving it one of the more established clearing setups among newer entrants.
- Welcome offer: Trade 10 dollars, get a 10 dollar bonus.
- Platform experience: Straightforward sign-up flow with a market menu that spans sports, crypto price events, and current-affairs contracts.
- Final take: A solid secondary platform for traders who want pricing or market variety beyond Kalshi and Polymarket without a steep learning curve.
Current terms are available on the OG Predictive promo code page. OG Predictive remains fully available to Texas users, with no state-specific restrictions currently in place.
Novig
Novig operates its sports-only prediction exchange in Texas, giving traders a peer-to-peer alternative focused specifically on game outcomes, futures and player statistics.
- Best known for: A sports-only exchange model, built specifically around peer-to-peer trading on game outcomes, futures and player statistics rather than a broad menu of political or cultural markets.
- Platform experience: A simpler, sportsbook-style interface layered on top of exchange pricing, aimed at traders who want a familiar look and feel.
- Final take: A strong sports-focused complement to Kalshi and Polymarket for traders who want exchange-style pricing without leaving a betting-slip style layout.
New users can start trading on Novig here. Texas bettors who miss the feel of a traditional betting slip may find Novig’s exchange-with-a-sportsbook-layout approach an easier entry point than Kalshi or Polymarket.
Other Prediction Market Platforms to Know
Kalshi, Polymarket, DraftKings Predictions, OG Predictive and Novig cover most of the trading volume, but the field keeps growing. FOX Sports does not currently have partner offers for the platforms below, so they are included here for context rather than as ranked recommendations.
- Robinhood: Added event contracts inside its existing trading app, aimed at users who already hold stocks or crypto there.
- FanDuel Predicts: FanDuel’s entry into event contracts, built for bettors who already use the FanDuel Sportsbook app.
- Fanatics Markets: Fanatics’ prediction market product, following the same CFTC-regulated event contract model as its competitors.
- Gemini Predictions: A crypto exchange-backed entrant with event contracts funded through Gemini’s existing wallet infrastructure.
- Coinbase Predictions: Coinbase’s event contract product, aimed at its large existing crypto user base.
- Underdog Predictions: A newer entrant from the daily fantasy operator Underdog, layering event contracts onto its existing platform.
How We Rank the Best Texas Prediction Market Platforms
- Regulatory status: Confirmed CFTC designation as a Designated Contract Market or registered introducing broker
- Market depth and liquidity: Breadth of sports, political, economic and cultural markets, and how tight the spreads are on high-volume events
- Fees and pricing transparency: How trading costs are disclosed and whether they are built into the contract price or charged separately
- Mobile app experience: Ease of account verification, funding, order placement and market research inside the app
- Welcome offer value: Size and accessibility of the new-user offer relative to the minimum trade or deposit required
- Customer support and funds security: Availability of support channels and how deposits and withdrawals are handled
Prediction Markets vs Sportsbooks in Texas
Texas is the largest US state with no legal sports betting in any form, retail or online, despite repeated legislative attempts to change that. For background on why that is and what has been proposed, see the FOX Sports Texas sports betting guide. That makes prediction markets the only regulated way for Texans to trade directly on the outcome of a game right now.
| Feature |
Prediction Markets |
Sportsbooks |
| Legal in Texas |
Yes, under federal CFTC oversight. |
No licensed operator currently available |
| Who you trade against |
Other traders on the exchange |
The sportsbook itself |
| Pricing |
Set by supply and demand, $0 to $1 per contract |
Set by the operator using American odds |
| Market scope |
Sports, politics, economics, weather and culture |
Primarily sports |
| Regulator |
Commodity Futures Trading Commission (federal) |
State gaming commission |
| Minimum age |
18 and older on most platforms |
21 and older in states with legal betting |
Texas Prediction Markets: Politics, Energy and College Football
Texas trading activity skews toward a few categories that reflect the state’s economy, politics and sports culture.
- Political markets: Statewide races, including the 2026 governor and attorney general contests, are among the highest-volume non-sports markets available to Texas traders
- Energy markets: Contracts tied to oil and natural gas prices draw consistent interest given the size of the state’s energy sector
- College football markets: With the Longhorns, Aggies, and the broader SEC and Big 12 footprint in Texas, college football contracts are some of the most actively traded sports markets in the state
- Economic markets: Inflation, interest rate and jobs report contracts see steady volume from Texas-based traders and finance professionals
- Tax treatment: Texas has no state income tax, so trading profits avoid the added state-level tax bite that traders in income-tax states face. Federal tax rules still apply, and traders should keep their own records rather than rely on a platform’s tax summary alone
- Pro sports markets: With no legal sportsbook in the state, Cowboys, Texans, Rockets, Mavericks, Spurs, Astros and Rangers markets on Kalshi, Polymarket and DraftKings Predictions are the closest legal equivalent to a game-outcome bet available to Texas residents
How to Start Trading Prediction Markets in Texas
- 1. Download the app or visit the website for the platform you want to use, such as Kalshi, Polymarket, DraftKings Predictions or OG Predictive.
- 2. Create an account and complete identity verification, which is required on every CFTC-regulated platform before you can fund an account.
- 3. Deposit funds using an accepted method, such as a debit card, bank transfer or stablecoin deposit, depending on the platform.
- 4. Browse available markets and review the contract price, which reflects the market’s estimated probability of that outcome.
- 5. Place your first trade, and remember that most platforms let you sell your position before the event resolves if the price moves in your favor.
- 6. Withdraw available funds back to your original payment method or a supported crypto wallet once you are ready to cash out.
Benefits of Using Multiple Prediction Market Platforms
Prices for the same event can differ slightly from one exchange to another, since each platform sets prices based on its own pool of traders. Using more than one account can help Texas traders find better pricing and access a wider set of markets overall.
- Compare contract pricing across exchanges before committing to a position
- Access category strengths unique to each platform, such as Kalshi’s political market depth or Polymarket’s breaking news coverage
- Reduce the impact of a single platform pausing sports contracts if the state legislature acts on the committee’s findings
- Collect welcome offers across multiple platforms rather than a single sign-up bonus
Responsible Trading
Trading event contracts involves real risk of loss and should always be approached as entertainment, not as an investment strategy. Never commit more than you can afford to lose, and review each market’s contract price and settlement rules before taking a position. Free, confidential support is available around the clock from these organizations.
Texas Prediction Markets FAQs
Are prediction markets legal in Texas?
Yes. Kalshi, Polymarket, DraftKings Predictions and OG Predictive all operate legally in Texas under federal CFTC oversight. A state Senate committee is studying the issue, but no lawsuit or enforcement action currently restricts trading.
Is Kalshi legal in Texas?
Yes. Kalshi is regulated by the CFTC and currently operates in Texas without restriction. The platform has not been named in any Texas lawsuit or enforcement action as of August 2026.
Is there a legal online sportsbook in Texas?
No. Texas has no licensed retail or online sportsbook. It is the largest US state by population with no legal sports betting in any form, which is a major reason prediction markets have grown so quickly among Texas sports fans.
Can I trade on Texas teams using prediction markets?
Yes. Kalshi, Polymarket and DraftKings Predictions all list contracts tied to Texas teams such as the Cowboys, Texans, Rockets, Mavericks and Astros, since these platforms operate under federal rather than state sports betting law.
Could Texas ban prediction markets?
It is possible but not imminent. Lieutenant Governor Dan Patrick has directed a state Senate committee to study the issue, with findings expected to inform potential action in the 2027 legislative session. Federal courts have blocked similar state restrictions elsewhere, which would likely shape any Texas proposal.
What is the difference between prediction markets and sports betting?
Prediction markets let you trade contracts against other users at prices set by supply and demand, with no house setting the odds. Sportsbooks set their own odds and take the other side of your wager, building a margin into the line.
Which prediction market platform is best for Texas traders?
Kalshi and Polymarket lead in overall market depth and liquidity for Texas traders, including Texas-specific political markets. DraftKings Predictions is a strong fit for existing DraftKings customers, and OG Predictive is worth comparing for pricing on specific markets.
Do I need to be 21 to use prediction markets in Texas?
No. Most prediction market platforms, including Kalshi and Polymarket, set the minimum age at 18. This differs from traditional sportsbooks, which generally require users to be 21 or older.
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