Where Is Kalshi Legal? Countries, States, Regulation Explained

Kalshi, a US-based regulated predictions markets exchange, has become incredibly popular in recent years, surging to a $5 billion valuation in October 2025. Kalshi is legal in all 50 states and available to players in 140 countries outside of the US, although it is unregulated in international markets and players may face limitations.

In this “Where is Kalshi Legal?” article, we’ll cover Kalshi regulation in the US (why it’s legal and how it’s regulated), issues impacting its availability for Kalshi international users, how it compares to our top betting sites, and the legal complexities of prediction markets and event contracts.

What is Kalshi and How is it Regulated?

Prediction markets combine aspects of traditional sports betting and derivatives investing. Platforms like Kalshi, the first federally-regulated exchange in the US, allow consumers to trade binary options (yes or no outcome) on select markets at price points reflecting their probability. Rather than the house establishing the odds, like with online sportsbooks, odds are determined by user activity.

Players can buy shares of “yes” or “no” options for all event contracts at prices between $0.01 and $1. They can sell those shares at any time to make a profit or mitigate loss from changes in probability. Alternatively, they can wait to see if the event contract settles based on the qualifying terms.

Kalshi does have sports betting (exclusively with yes or no outcomes), but a big part of its appeal is trading on future events in areas like politics, economics, and weather. One example currently on Kalshi is, “Will the US confirm that aliens exist before 2027?”

The US Commodity Futures Trading Commission (CFTC) regulates Kalshi as a Designated Contract Market (DCM), meaning trading is legal for players nationwide. However, there has been some legal challenges in certain states, specifically with regard to sports betting.

In addition to Kalshi, Polymarket is exploding in popularity as a predictions market. To see how the two compare, we’ve prepared a Kalshi vs. Polymarket guide.

Where is Kalshi Legal?

Kalshi is legally authorized in the US via the CFTC, which regulates all derivatives markets (including futures and crypto), market participants, and trading platforms. Kalshi, like other exchanges, must adhere to strict CFTC standards to maintain licensing and avoid penalties. This is a key measure for player safety and security.

As part of its international expansion strategy, Kalshi announced in October 2025 that it was making its platform available in 140 countries, although Canada, France, and the UK are among the notable exclusions.

Also, just because the platform may be available internationally doesn’t mean players in Kalshi-allowed countries have the same legal protections as Americans. Kalshi doesn’t hold licenses outside of the US, meaning trading activity elsewhere isn’t regulated and subject to certain regional restrictions.

Is Kalshi Legal in the United States?

Kalshi is legal in all 50 states, Washington, D.C., and all US territories. Players must be US residents and be at least 18 years of age to trade event contracts.

Because the platform is federally regulated through the Commodity Exchange Act, it falls outside of state gambling laws, allowing players in states that haven’t legalized sports betting (California and Texas, to name a couple) a chance to bet without violating state law.

However, in recent months, some states, including Maryland, New Jersey, and Massachusetts, have challenged Kalshi’s legality for sports prediction markets. In January 2026, a Superior Court judge in Suffolk County (Massachusetts) ruled that sports contracts on the platform are subject to state gaming laws.

While this may have an impact on Kalshi’s ability to offer sports contracts in the future, it should not affect the legality of contracts in other prediction markets, i.e. politics and economics.

Is Kalshi Legal Outside the US?

Kalshi may be available in dozens of countries worldwide, but it is not licensed – or regulated – in most foreign jurisdictions, instead operating like offshore gambling sites. It exists in a legal grey area in these markets, meaning trading is not explicitly legal or illegal. As such, there is risk involved when using unregulated platforms.

To summarize, there are no Kalshi-legal countries other than the US, but players can access the platform in 140 countries. Many of these countries are hesitant to license Kalshi and other prediction market platforms, as they view activity on the site closer to gambling than derivatives trading. There’s also a concern certain events may be susceptible to insider trading or fraud.

Can International Users Access Kalshi?

Kalshi availability by country varies from region to region. In the US, where it is a completely legal and licensed operator, players must provide their Social Security number, government-issued photo ID, and proof of address. These Know Your Customer (KYC) requirements are part of its compliance with CFTC regulations.

International users must also prove their identity, but KYC protocols are not as strict for players outside the US. Residents of the US can still access and trade on Kalshi while visiting other countries, but may require a VPN.

Players in more than 50 countries are prohibited from using Kalshi. When attempting to sign up, they’ll be notified that the platform is not available in their region. Using a VPN to create an account in an unauthorized jurisdiction may result in account closure and asset seizure. There’s also no legal protection for players in unauthorized jurisdictions.

Why Kalshi’s Legality is so Limited

Prediction markets are still a relatively new concept, so even in the US where they’re legal and regulated by the CFTC, there have been challenges, most notably by courts in Massachusetts and Maryland.

Some state tribal gaming organizations have also challenged Kalshi and other event contracts exchanges, claiming their sports-related offerings violate their exclusive gaming rights on tribal lands.

With such challenges still ongoing in the US, it’s not hard to see why Kalshi has yet to secure official licensing in other jurisdictions. The biggest issue is sports contracts, which detractors argue is no different than sports gambling.

Most international markets require gambling companies to secure local licensing to keep taxes in-state, regulate activity, and ensure fair gameplay. The regulatory complexity of prediction markets makes it difficult for operators like Kalshi to navigate these ever-changing frameworks.