Texas Prediction Markets
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Is DraftKings Legal in Texas?

DraftKings Sportsbook — no. DraftKings DFS — yes. Here's the legal way for Texans to trade sports in 2026.

Catie Di Stefano By , Founder & Editor-in-Chief · Updated

Kalshi · Trade $25 and Get $25!

TXPREDICTSClaim (opens in a new tab)
21+ · T&Cs apply

Certain limitations apply. The offer is available to new users only, subject to the terms and conditions at kalshi.com/tc/500. 18+ only. Restrictions and eligibility requirements apply. Event contract trading involves significant risk and is not appropriate for everyone. Please carefully consider if it is appropriate for you in light of your personal financial circumstances. Kalshi products are not available in all jurisdictions. See kalshi.com/regulatory for more information.

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On this page
  1. What about DraftKings Predictions?
  2. Why DraftKings Sportsbook isn't legal here
  3. Will DraftKings become legal in Texas?
  4. DraftKings DFS in Texas
  5. The legal alternative

No: DraftKings Sportsbook isn't legal in Texas, and it blocks Texas locations. Here's what Texans can use instead, with code TXPREDICTS:

  • ProphetX: trade $50, get $75. CFTC-regulated sports exchange.
  • Kalshi: trade $25, get $25. CFTC-regulated.
  • Polymarket US: deposit $10, get a $25 trading bonus. CFTC-regulated.
  • OG (Crypto.com's app): trade $25, get $50 in rewards.

ProphetX: trade $50, get $75 (opens in a new tab) Kalshi: trade $25, get $25 (opens in a new tab) Polymarket: $25 bonus (opens in a new tab) OG: trade $25, get $50 (opens in a new tab)

Certain limitations apply. The offer is available to new users only, subject to the terms and conditions at kalshi.com/tc/500. 18+ only. Restrictions and eligibility requirements apply. Event contract trading involves significant risk and is not appropriate for everyone. Please carefully consider if it is appropriate for you in light of your personal financial circumstances. Kalshi products are not available in all jurisdictions. See kalshi.com/regulatory for more information.

18+ Only. Restrictions and eligibility requirements apply. Not available in all jurisdictions. Trading is risky. 100% loss can occur. See polymarket.com/tos for more information. The Polymarket US App serves as an independent software provider and affiliate of Polymarket US and Polymarket Clearing, the CFTC-regulated exchange and clearing organization.

Kalshi · Trade $25 and Get $25!

TXPREDICTS

Claim on Kalshi (opens in a new tab)

Certain limitations apply. The offer is available to new users only, subject to the terms and conditions at kalshi.com/tc/500. 18+ only. Restrictions and eligibility requirements apply. Event contract trading involves significant risk and is not appropriate for everyone. Please carefully consider if it is appropriate for you in light of your personal financial circumstances. Kalshi products are not available in all jurisdictions. See kalshi.com/regulatory for more information.

Last checked October 21, 2026

Where the courts stand · September 29, 2026

Federal appeals courts are split on whether states can apply their gambling laws to sports event contracts. All three rulings are preliminary-injunction decisions, not final judgments. On April 6, 2026 the 3rd Circuit (New Jersey), 2-1, found federal law likely preempts state law. On August 28, 2026 the 9th Circuit (Nevada) and on September 25, 2026 the 6th Circuit (Ohio and Tennessee) ruled at the same preliminary stage that Kalshi is unlikely to show federal law blocks the states' gambling laws. Three petitions are already before the Supreme Court (Nos. 26-299, 26-338 and 26-344); none has been granted yet.

Texas is in the 5th Circuit, which hasn't ruled. As of September 29, 2026 Texas hasn't sued Kalshi or Polymarket or ordered them to stop; Lt. Gov. Dan Patrick has asked state senators to study the issue ahead of the 2027 legislative session. The rulings concern sports contracts. This isn't legal advice.

What about DraftKings Predictions?

DraftKings Predictions is a separate app from DraftKings Sportsbook. It launched in December 2025 and offers CFTC-regulated event contracts through CME Group, run by a DraftKings subsidiary registered with the CFTC as an introducing broker. At launch it listed Texas among its states. Sportsbook betting is still not allowed in Texas, and courts are still deciding on sports event contracts, so check the app for your state before you sign up.

Texas has not authorized commercial sports betting. The Texas constitution would likely need to be amended, and the legislature has repeatedly declined to pass enabling legislation. Until both happen, DraftKings Sportsbook (and every other state-licensed sportsbook) will remain off-limits to Texans.

Not before 2027 at the earliest. Legal sports betting in Texas needs a constitutional amendment: two-thirds of both chambers must pass it, then voters must approve it. In 2025 none of the sports-betting resolutions got a committee vote before the Legislature adjourned on June 2, 2025, and Lt. Gov. Dan Patrick, who controls the Senate agenda, opposes expanding gambling. The Legislature meets in regular session in odd-numbered years, so the next real chance is the session that starts in January 2027. Even then, the optimistic timeline is a vote in November 2027 and a launch in 2028.

DraftKings DFS in Texas

DraftKings DFS operates in Texas. The Texas AG issued a non-binding opinion in 2016 calling DFS illegal, but no enforcement has followed. DFS is structurally different from sportsbook betting (entry-fee contests vs odds-based wagering).

CFTC-regulated event-contract exchanges let Texans trade Yes/No contracts on game outcomes, championship winners and player stats, priced in cents. They are regulated federally as event contracts, and federal appeals courts are currently split on whether states can apply their gambling laws to sports contracts (see the court update above); Texas's own appeals circuit hasn't ruled. For the NFL, NBA, MLB, NHL, college football and UFC, the markets are there. Full guide →

Trade on ProphetX (opens in a new tab) Trade on Kalshi (opens in a new tab) Trade on Polymarket US (opens in a new tab) Trade on OG (Crypto.com) (opens in a new tab)

Sources & references

Frequently asked questions

Is DraftKings legal in Texas?

DraftKings Sportsbook is NOT legal in Texas in 2026 — the state has not licensed sports betting. DraftKings DFS (daily fantasy) is available in Texas under a different legal framework. Texans who want real-money sports markets use CFTC-regulated event-contract apps such as Kalshi, Polymarket US and OG, which are available in Texas.

Can I use DraftKings in Texas?

DraftKings Sportsbook is geofenced — you cannot access it from Texas IPs. DraftKings DFS (pick-em, draft contests) is accessible. For sportsbook-style real-money trading, use a CFTC-regulated event contract exchange.

When will DraftKings be legal in Texas?

Not before 2027 at the earliest. Legal sports betting needs a constitutional amendment passed by two-thirds of both chambers and then approved by voters. The 2025 proposals never got a committee vote before the Legislature adjourned on June 2, 2025, and Lt. Gov. Dan Patrick opposes expansion. The Legislature's next regular session starts in January 2027; under an optimistic scenario voters could decide in November 2027, with a launch in 2028.

What's the legal DraftKings alternative for Texans?

ProphetX (trade $50, get $75 with code TXPREDICTS) is a CFTC-regulated sports exchange, and Kalshi (trade $25, get $25 with the same code) is a CFTC-regulated exchange with markets on all major US sports. Polymarket US (deposit $10, get a $25 trading bonus) and OG, Crypto.com's app (trade $25, get $50 in rewards), are also available in Texas. Federal courts are split on whether states can regulate sports event contracts, so check the current status.

How is DraftKings legal in Texas if sports betting isn't?

It isn't, for the sportsbook: DraftKings Sportsbook blocks Texas locations. What Texans can use is DraftKings' daily fantasy (DFS) contests, a different product that operates in Texas despite a non-binding 2016 Attorney General opinion calling paid DFS illegal. DraftKings also runs a separate DraftKings Predictions app with CFTC-regulated event contracts, which listed Texas among its states at its December 2025 launch.

Sign up at Kalshi (opens in a new tab) Sign up at Polymarket US (opens in a new tab)