Where Is ProphetX Legal? Available States & Market Restrictions
ProphetX Legal States 2026
ProphetX is a federally regulated prediction market built primarily around sports, allowing users to trade real-money event contracts against other market participants rather than a traditional sportsbook.
The platform is currently available in 49 U.S. states plus Washington, D.C., including states such as California and Texas, where traditional online sportsbooks are not licensed to operate.
However, the types of markets available aren't identical in every jurisdiction. State-level restrictions can affect which event contracts users are able to trade, even where the underlying platform remains accessible.
From Licensed Sportsbook Exchange to Prediction Market
ProphetX's history is a good example of a promising idea that was ahead of its time.
The company launched in New Jersey in August 2022 as Prophet Exchange, a licensed peer-to-peer sports betting exchange. But expanding through separate state sportsbook regimes proved difficult, and its New Jersey operation closed in May 2024.
Later that year, it relaunched as ProphetX under a sweepstakes model, using virtual currencies to reach players across dozens of states. That lasted until June 2026, when ProphetX received federal approval from the CFTC and relaunched as a regulated prediction market.
Through all three versions, the fundamental idea remained the same: let users trade against each other and set their own prices rather than accept whatever odds a sportsbook offers.
Their exchange concept was there years before sports prediction markets gained mainstream attention. Now, ProphetX has a federal regulatory framework that offers a potential path to the nationwide reach its original model struggled to achieve.
Where Is ProphetX Available?
ProphetX is currently available in 49 U.S. states plus Washington, D.C.
The complete list is:
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming and Washington, D.C.
To trade, users must be 18 or older and physically located in an eligible jurisdiction. ProphetX uses geolocation checks to determine where users can place trades, and the types of available contracts depend on their current location.
What Markets Does ProphetX Offer?
DraftKings Predictions is built around event-based prediction markets, where users trade yes/no contracts tied to real-world outcomes.
Depending on your state, these markets can include:
- Sports outcomes (game results, season-long events, etc.)
- Economic indicators
- Crypto
- Commodities
At the moment, DraftKings Predictions is more conservative than many national competitors - like Kalshi and Polymarket - when it comes to market categories. Politics, culture and entertainment markets are not widely offered yet, though DraftKings has signaled interest in expanding its market mix over time.
More importantly, however, not every state gets access to all of DraftKings Prediction's market types.
Which ProphetX Markets Are Available in My State?
ProphetX operates across most of the U.S., but its full market menu isn't identical everywhere.
With state regulators increasingly challenging sports event contracts, some jurisdictions have restricted access to particular markets while allowing the underlying prediction market platform to remain available.
Which States Does ProphetX Offer Sports Markets In?
ProphetX offers both sports and political event contracts in 48 states plus Washington, D.C.
The complete list is:
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming and Washington, D.C.
Users physically located in these jurisdictions can trade all of ProphetX's available sports contracts, including game results, spreads, totals and player markets, alongside its political prediction markets.
The availability of individual contracts can change as events are listed, settled or removed, but these jurisdictions currently receive access to both of ProphetX's main market categories.
Why Sports Access Differs Between States
One of the biggest developments I've been watching in prediction markets is the growing resistance from state gambling regulators, particularly when it comes to sports contracts.
The argument is fairly straightforward. Prediction market operators maintain that their event contracts fall under federal commodities regulation, while state regulators argue that predicting the winner of a football game for money is still sports betting, regardless of how the transaction is structured.
That disagreement is now playing out through cease-and-desist orders, lawsuits and court rulings across the country. Some platforms have responded by restricting sports contracts in particular states while continuing to offer other markets. Others have withdrawn their products entirely from certain jurisdictions.
Connecticut is currently the clearest example of that distinction for ProphetX, but I wouldn't assume it will be the last. As these legal disputes develop, more states could see changes to their sports-market access, even while the underlying prediction market remains available.
ProphetX Politics-Only States
Connecticut is currently the only state where ProphetX offers access to political prediction markets without sports event contracts.
Users in Connecticut can trade eligible political contracts covering elections and government-related outcomes, including congressional races and control of legislative bodies.
Sports contracts, including game winners, spreads, totals and player performances, are unavailable in this category.
DraftKings Predictions is currently not available in the following states:
Maine (ME), New Hampshire (NH), Ohio (OH).
Prediction markets operate under a different legal framework than sportsbooks, but that doesn’t mean every state is equally receptive to them. Some jurisdictions take a more conservative view on real-money speculation outside traditional gambling channels, especially when it involves financial-style contracts or event-based outcomes that don’t fit neatly into existing categories.
Rather than forcing the issue or operating in legal gray areas, DraftKings has opted to stay out of states where the regulatory environment is unclear or potentially hostile.
ProphetX Markets by State
| Market Type | States Available |
|---|---|
| Sports + Politics | AL, AK, AZ, AR, CA, CO, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY, DC |
| Politics Only | CT |
| Unavailable | NV |
How Does ProphetX Work?
ProphetX operates as a peer-to-peer prediction market exchange, allowing users to trade event contracts based on the outcomes of sporting events and political contests.
Unlike traditional sportsbooks, where the operator sets the odds and takes the opposite side of a wager, ProphetX matches trades between market participants. Prices are determined by the orders users are willing to buy and sell.
When you find an event you want to trade, you can take an existing price offered by another participant or submit your own price and wait for someone to match it. A trade only takes place once the order is matched.
For sports markets, ProphetX uses familiar betting formats such as moneylines, spreads, totals and player props. However, the prices behind those markets are driven by supply and demand rather than a sportsbook's pricing desk.
Once you've opened a position, you can hold it until the event settles or attempt to exit early by trading out at the available market price. This means your position can gain or lose value before the actual event is decided.
Winning positions settle according to the contract's rules, while losing positions result in the loss of the amount risked. ProphetX currently advertises a 2% fee on winnings.
Using ProphetX as a Sports Bettor
ProphetX is probably one of the easier prediction markets for a traditional sports bettor to get comfortable with.
That's deliberate. The company has spent years building a product around familiar betting markets, and it shows. You'll find moneylines, spreads, totals, player props and live markets laid out in ways that feel much closer to a sportsbook than a financial trading platform.
But once you start placing trades, the differences become obvious.
At a regular sportsbook, you're accepting a price offered by the house. On ProphetX, you're trading against other people. You can take an available price, post your own, or try to exit a position when the market moves in your favor.
The trade-off is liquidity. A sportsbook generally accepts an eligible bet immediately at its displayed odds, while a peer-to-peer exchange needs another participant willing to match your order. You might find a great price, but that doesn't guarantee someone will take the other side.
ProphetX also charges a fee on winnings rather than building a traditional sportsbook margin into its prices. For anyone used to shopping around for better odds, that makes the exchange model worth understanding.
Learn More About Prediction Markets
Can I Win Real Money on ProphetX?
Yes. ProphetX is a real-money prediction market, meaning users can fund their accounts with U.S. dollars, trade event contracts and withdraw eligible funds and profits.
When you enter a trade, you risk money on a particular outcome. If the outcome resolves in your favor, the contract settles according to its terms and you receive the applicable payout. If your position loses, you lose the amount committed to that trade.
Instead of juice, ProphetX charges a 2% fee on winnings. For example, if a settled position generates $50 in gross profit, a 2% fee would reduce that profit by $1, leaving $49.
You can also attempt to close a position before settlement. Whether you realize a profit or loss depends on the price available when another participant matches your exit order.
Your final result therefore depends on the price at which you enter or exit, the contract's settlement outcome and any applicable trading fees.
Why Is ProphetX Legal?
When I'm evaluating the legal basis for a prediction market, I start with its regulatory status. In ProphetX's case, the company operates through a federally regulated structure overseen by the Commodity Futures Trading Commission.
ProphetX LLC was registered as a Derivatives Clearing Organization on June 10, 2026, and designated as a Designated Contract Market the following day.
Those registrations allow ProphetX to operate a federally regulated derivatives exchange and clearing operation. Its event contracts are traded within that commodities framework rather than through individual state sportsbook licenses.
For consumers, this explains why ProphetX can operate in states where traditional online sportsbooks are unavailable.
However, sports contracts remain legally contested. Several state regulators argue that contracts predicting sporting outcomes fall within their gambling laws, even when traded on a federally regulated exchange. Prediction market operators generally maintain that federal commodities law governs those transactions.
Courts have reached different conclusions in related cases, and some states have pursued enforcement or restrictions while litigation continues.
That is why the practical availability of a platform like ProphetX can differ by state even though its underlying exchange operates under federal regulation.
ProphetX Legal States FAQ
ProphetX is currently available in 49 U.S. states plus Washington, D.C., with Nevada as its only completely unavailable state.
Most supported jurisdictions offer both sports and political event contracts. Connecticut is currently classified as Politics Only following state enforcement action against sports prediction markets. Users must be at least 18 and physically located in an eligible jurisdiction to trade.
Yes. ProphetX is a legitimate, federally regulated prediction market operating through ProphetX LLC, which is both a CFTC-designated contract market and a registered derivatives clearing organization.
That means ProphetX operates within the U.S. derivatives regulatory system, rather than as an unlicensed offshore betting exchange. Its federal registrations do not eliminate the ongoing legal disputes over sports contracts, but the company's regulatory status is independently verifiable through the CFTC.
ProphetX is currently classified as Politics Only in Connecticut, meaning political event contracts are treated as available while sports markets are restricted.
On September 10, 2026, Connecticut's Department of Consumer Protection ordered ProphetX and eight other companies to stop offering sports event contracts, arguing that they constituted unlicensed sports betting.
In early October, state officials identified ProphetX among three companies that had stopped offering sports prediction markets. However, the reported withdrawal was publicly disputed, and the original reporting was subsequently corrected to clarify that the restrictions concerned sports prediction-market services rather than necessarily the entire platform.
ProphetX has not publicly confirmed the precise scope of its Connecticut restrictions. Our Politics Only classification is therefore provisional and may change as further information becomes available.
No. ProphetX is currently unavailable in Nevada, which is the only state specifically excluded from the platform's published nationwide availability.
That restriction applies to the entire ProphetX product, including both sports and political contracts. Nevada has also pursued aggressive enforcement against prediction-market operators, although ProphetX has not publicly attributed its exclusion to one specific enforcement action.
Yes. ProphetX is available in Texas, with access to both sports and political prediction markets.
Texas does not currently offer a traditional statewide regulated online sportsbook market, but ProphetX operates through the federal commodities framework rather than a Texas sportsbook license. Eligible users aged 18 or older can trade available contracts while physically located in the state.
Yes. ProphetX is available in California, including its sports and political event contracts.
California has not legalized conventional statewide online sportsbooks, but ProphetX's federally regulated exchange offers a different way to take positions on sporting outcomes. Users must be at least 18 and physically located in California when placing trades.
Yes. ProphetX is currently available in New York, with both sports and political prediction markets accessible.
New York has been involved in the wider regulatory fight over sports prediction markets, but ProphetX does not currently list the state among its unavailable or sports-restricted jurisdictions. Eligible users aged 18 or older can trade while physically located in New York.
Yes. ProphetX is available in Florida, where users can trade both sports and political event contracts.
ProphetX operates under the federal commodities framework rather than a Florida sportsbook license. Users must be at least 18 and physically located in Florida when placing trades.
You must be 18 or older to trade on ProphetX.
You also need to be physically located in a jurisdiction where the platform is available. Meeting the age requirement alone doesn't give you access to restricted contracts, such as sports markets in Connecticut, or allow you to trade from Nevada.
Yes, provided you are physically located in a state where ProphetX operates and meet its eligibility requirements.
Your trading access follows your current location, which ProphetX checks through geolocation. For example, sports and political contracts are available in California, while Connecticut is classified as Politics Only and Nevada is entirely unavailable.
