U.S. — Kentucky banned election betting in 2026 and initiated legal action against companies operating prediction markets. Arizona also took legal action against prediction market companies, alleging violations of state laws concerning election betting.

As of June 2026, 32 states prohibit election betting under various circumstances. In 23 of these states, election betting is entirely banned. Nine states enforce regulations with specific restrictions on election betting, while 18 states and the District of Columbia do not have explicit laws addressing the practice.

Arkansas law states that "no person shall make any bet or wager upon the result of any election" in the state. Oregon prohibits candidates for office from betting on their own contests. South Dakota criminalizes election betting when the intent is to disrupt voting or influence voter choices.

Lawmakers in more than a dozen states have introduced legislation to regulate prediction markets. Federal regulators, including the U.S. Commodity Futures Trading Commission, have sued several states to prevent them from regulating prediction markets, arguing that platforms like Kalshi and Polymarket involve trading financial products rather than placing bets. These regulators contend that prediction markets should be exempt from state-level gambling bans.

In Iowa, Massachusetts, Pennsylvania, and Rhode Island, bookmakers and pool sellers who organize election-betting schemes face penalties, but individuals who place bets do not. Most states where election betting is unlawful classify it as a misdemeanor, which can lead to fines, incarceration, or both. However, Illinois and Nebraska may prosecute election betting as a felony, depending on factors such as the amount of money involved or prior gambling offenses. Utah considers election betting a felony if a candidate in an election makes the bet.

Some states impose additional restrictions. Delaware and New York strip violators of election betting laws of the right to vote. Wisconsin makes it unlawful for individuals who bet on an election to vote in that specific race. A conviction for or history of election betting bars individuals from serving as election officials or poll workers in Indiana, North Dakota, Pennsylvania, and West Virginia. Arkansas bans individuals convicted of election betting from holding any state office or being employed by the state. An Idaho statute from 1887 established election betting as a misdemeanor.