Can You Bet on Kalshi in the US? Your 2025 Guide to Legal Trading

Is Kalshi Legal in the United States?

Kalshi is fully legal at the federal level, operating under the Commodity Futures Trading Commission (CFTC) as a Designated Contract Market (DCM). This status, granted in 2020, ensures strict oversight, making it a regulated platform for US residents aged 21 and up.

Unlike gambling sites, Kalshi focuses on event contracts, not bets, which keeps it distinct under federal law. However, state regulations muddy the waters. In places like New Jersey and Nevada, Kalshi faces pushback, with cease-and-desist orders targeting its sports markets.

Kalshi’s fighting these in court, recently winning a preliminary injunction in Nevada to keep operating while cases unfold (Federal Judge Sides with Kalshi in Nevada Prediction Market Dispute). So, while most states allow Kalshi, check your local rules, some restrictions apply.

Right now, only US residents can trade, as international access awaits regulatory green lights. Critics, including groups like Better Markets, worry election contracts could skew voter trust, but Kalshi argues regulation curbs risk compared to offshore platforms like Polymarket. “State law doesn’t really apply to us,” says Kalshi’s CEO, emphasizing federal precedence (Kalshi CEO: ‘State law doesn’t really apply’ to us | TechCrunch).

Getting Started: How to Trade on Kalshi

Kalshi’s platform is user-friendly, letting you trade with just a dollar. Here’s the rundown:

Step 1: Create Your Account

Head to Kalshi’s website and sign up with an email. You’ll verify it with a link, then enter basics: name, birth date, address, to pass identity checks. This step, required for compliance, takes minutes and secures your account.

Step 2: Add Funds

Deposit at least $1 using a debit card, bank transfer, or crypto wallet. Kalshi sweetens the deal with a 3.75% annual interest rate on qualifying balances, a perk for keeping cash in your account. Funds are ready to trade instantly.

Step 3: Pick Your Market

Kalshi offers contracts on diverse topics: politics, weather, economics, even pop culture. Each contract asks a yes-or-no question, like “Will it snow in NYC this week?” Prices, ranging from 1 to 99 cents, show the market’s odds. A 60-cent “Yes” contract means a 60% chance, per traders.

Step 4: Place Your Trade

Choose “Yes” or “No” and decide how to trade. Quick Orders grab the current price for speed. Limit Orders let you set a target price for control. Each contract costs its listed price, and Kalshi charges a 2% fee per trade. If your pick is right at expiration, you earn $1 per contract; if wrong, you get zero.

Step 5: Track and Cash Out

Watch your trades as prices shift with news or sentiment. Sell early to lock in gains or cut losses. When contracts close, payouts hit your account within two hours for winners. Losers lose their initial stake.

What Sets Kalshi Apart?

Unlike sportsbooks, Kalshi’s a peer-to-peer market, matching traders, not banking on losses. It’s built for transparency, with encryption and two-factor authentication to protect users.

Tools like spending limits help manage risk, appealing to cautious traders. Contracts span beyond sports—think Oscar winners or inflation rates—offering variety you won’t find at Vegas odds tables.

Current Challenges and What’s Next

Kalshi’s sports markets face legal hurdles in key states, but its federal backing keeps it strong. A win in ongoing lawsuits could open doors nationwide, especially for sports fans.

Globally, Kalshi’s eyeing expansion, but non-US traders must wait. The platform’s low $1 entry and broad markets make it accessible, though its speculative nature carries risks, especially in volatile areas like politics.

Final Numbers to Know

• Minimum Deposit: $1
• Commission Fee: 2% per trade
• Payout per Contract: $1 if correct
• Interest Rate: 3.75% APY on eligible funds
• Age Requirement: 21+

Kalshi offers a regulated, exciting way to trade predictions in 2025, but state laws and market risks demand attention. Ready to try? Verify your state’s status and start small.