More than half of states restrict betting on elections

More than half of U.S. states restrict betting on elections, according to a Pew Research Center analysis of National Conference of State Legislatures data, as prediction market platforms face mounting legal challenges and legislative scrutiny across the country [1]. The analysis found that 23 states prohibit election betting entirely, while another nine states impose partial restrictions that vary by circumstance [1]. The remaining 18 states and the District of Columbia have no explicit laws addressing election wagering, though some maintain broader gambling regulations that officials say encompass the practice [1]. An Idaho statute dating to 1887 made election betting a misdemeanor three years before the territory achieved statehood [1]. The history of gambling in the United States has followed a pattern of minimal formal regulation giving way to widespread prohibition by the early 20th century, followed by a gradual loosening of restrictions in recent decades [2]. The legal landscape has drawn renewed attention amid a surge in trading volume on prediction markets such as Kalshi and Polymarket, which allow users to trade contracts on real-life event outcomes including elections [1]. Polymarket, launched in Manhattan in 2020, operates as a cryptocurrency-based platform where participants trade shares representing the likelihood of specific future outcomes [4]. Kalshi, which launched in July 2021, is also based in Manhattan and is used primarily for sports betting, which constitutes more than 90% of site activity [7]. Federal regulators at the U.S. Commodity Futures Trading Commission contend that these platforms facilitate trading in financial products rather than gambling, and have sued several states to block them from regulating prediction markets [1]. State penalties for election betting vary considerably. In most states where the practice is unlawful, it is treated as a misdemeanor punishable by fine, incarceration, or both [1]. Illinois and Nebraska may prosecute election betting as a felony depending on the amount of money involved or prior gambling offenses [1]. A handful of states impose additional consequences: Delaware and New York strip violators of the right to vote, while Wisconsin makes it unlawful for someone who bet on an election to vote in that particular race [1]. Arkansas bars people convicted of election betting from holding any state office or state employment [1]. Lawmakers in at least 16 states have introduced legislation this year to regulate prediction markets [1]. Minnesota became the first state to prohibit Kalshi, Polymarket, and similar platforms statewide, though the law includes exceptions for weather contracts and event contracts that function as insurance policies [1]. Kentucky enacted multiple bills, including an election betting ban and a tax on prediction market operators [1]. Tennessee passed legislation making it a felony to attempt to influence an event outcome while holding a prediction market trade related to that event [1]. Prediction markets are considered gambling by many governments and are banned in some locations, with researchers noting similarities to gambling and potential for gambling addiction [8]. Concerns over election integrity and declining public trust in democratic processes have been raised by consumer advocacy groups and politicians regarding election betting [7]. The U.S. Senate banned senators and their staff from betting on prediction markets such as Kalshi in May 2026 [7]. During the 2024 presidential election, the Republican Party pursued strategies to modify voting laws and restrict certain demographics, efforts promoted using claims about election integrity that critics argue erode public trust in election fairness [5].