Is Kalshi Legal in Texas? Status as of November 2025
Yes, Kalshi is legal in Texas. The federally regulated prediction exchange lets Texans buy and sell event contracts on real-world outcomes.
Why care? If you follow sports, politics, or big economic prints, Kalshi lets you act on your read without using sportsbooks. Oversight sits with the Commodity Futures Trading Commission (CFTC) at the federal level, not under Texas state gambling laws. And, since Texas still doesn’t have legalized sports betting, Kalshi is the smartest option.
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Ready to get started with Kalshi in Texas? Use the Texas referral code
If you’re in Texas and haven’t signed up for the new-user promo yet, learn more in our guide on the Kalshi referral code.
Why Kalshi’s Prediction Markets Are Allowed In Texas
In all states (including Texas), Kalshi operates under federal rules as a designated contract market. It’s a prediction exchange—not a sportsbook—so you’re trading event contracts rather than gambling under state law.
How Event Contracts Work
Event contracts are yes or no markets on future events. You pay a price between 1 and 99 cents on the yes or no; at the expiration date each contract settles at $1 if it’s correct and $0 if it’s not.
The price moves with news and other traders’ views of the event’s likelihood, and you can exit early by selling before settlement. Think season outcomes rather than props, like whether a team clinches its division by a set week. The market states the question and the rules, so you know exactly what result triggers settlement.
Politics works the same way. A statewide race might be framed around whether it’s officially called by a specific date. If it’s called in time, the contract resolves yes at $1; if not, it resolves no at $0. As forecasts and headlines shift, so does price, reflecting changing expectations right up to the expiration date.
Risk is straightforward. If you buy, your maximum loss is the price you pay and your potential gain is the difference up to $1 per contract, fees apply. If you sell first, the math switches. Either way, prices respond to market forces, and you can adjust or close your position before the result is final.
What Can You Trade on at Kalshi in Texas?
Offerings rotate, but the rhythm is familiar: clear questions, posted rules, a firm expiration date. Here’s where Texas traders spend most of their time at Kalshi:
Sports
Season and postseason outcomes are the draw—think division titles, playoff berths, conference winners, and championship results.
Texas users might be partial to trading on the below local teams, but all contenders are up for grabs:
- Dallas Cowboys
- Houston Texans
- Dallas Mavericks
- Houston Rockets
- San Antonio Spurs
- Dallas Stars
- Houston Astros
- Texas Rangers
- Texas Longhorns
- Texas A&M
- TCU
- Baylor
- Texas Tech
- SMU
- University of Houston
If you want another way to get in on sports action in Texas besides Kalshi, check out the Underdog Fantasy Texas promo code!
Politics
Everything’s bigger in Texas, including the interest in politics. The state has a unique political scene thanks to its historically dominant Republican party and massive influence on national policies.
And where there’s interest, there’s trading opportunities at Kalshi. Texas users can trade on everything from government shutdowns to regular election markets.
National elections and issues are fair game, though Texans might have particular interest in state Senate races. They can also trade on whether a bill will pass a chamber this session, whether a race will be called by a certain date, etc.
Pricing shifts with polls, filings, and debates, and you’ll see it move as new information hits.
Read Next: Best Political Betting Apps
Pop Culture
Examples of Kalshi pop culture markets you can trade on in Texas include those related to Taylor Swift, Spotify top songs, and the release of GTA 6. Texans can also trade on award shows, series renewals, etc.
Pop culture markets may center around trending events and only be relevant for a few days, while others are more futures-style.
Other Markets
Other examples of markets include:
- Texas gas prices
- Weather events
- Inflation
- Earnings releases
- Product launches
In short, it’d be easier to tell you what Kalshi doesn’t let Texas users trade on. The exchange has markets for everything from pop culture and politics to economics.
Kalshi’s Banking and Fees in Texas
Funding and cashing out are simple: ACH deposits and withdrawals are free, with bank timing guiding when funds clear.
If you want speed, debit card deposits post right away but include a processing fee; debit cash-outs to the same card arrive quickly for a small flat fee. Limits and exact costs are shown in your account.
One thing to keep in mind is that security holds can apply to new deposits before you can withdraw them. You can still place orders and manage positions while the hold runs its course; it’s just about account security.
You’ll also see per-order fees when an order executes. The fee schedule lives in the app and scales with expected return, so bigger potential payouts carry slightly higher costs. Check the live table before you submit.
Idle cash in your account can earn APY, and the current rate is shown in your account and can change. Interest accrues automatically on eligible balances, even when you’re not in a position.
Responsible Trading at Kalshi in Texas
Texans can set limits on their Kalshi account to practice responsible trading. Take a trading break, opt out voluntarily, or implement personalized funding caps.
If you need further support, you have responsible gambling resources in Texas:
- Call the National Problem Gambling Helpline at 1-800-GAMBLER.
- Reach out to the Texas Lottery Commission for local resources.
Tips for Using Kalshi in Texas
Here are some tips for Kalshi users in Texas:
- Make a plan: Before entering a trade, set a maximum risk per market, use limit orders instead of chasing prices, and establish an exit strategy.
- Know the market rules: Each market lists its data source and expiration date to determine settlement. Track when reports are released or events begin, since that’s when risk tends to spike.
- Let liquidity guide your trade size: Thin markets can widen fast. If trading volume is low, scale down your position or wait for more depth.
- Diversify: Rather than putting all of your eggs in one basket, try mixing categories like sports, politics, and macroeconomics. A single headline often has a ripple effect.
FAQs
Here are some FAQs about Kalshi in Texas:
Can you use Kalshi in Texas?
Yes. Kalshi is available in Texas and operates as a Designated Contract Market regulated by the Commodity Futures Trading Commission. Texans 18+ who pass identity checks can trade event contracts on the exchange. The platform facilitates trading in these markets and is not a sports betting platform under state law.
How is Kalshi legal in Texas?
Regulation sits at the federal level within the U.S. derivatives markets. Kalshi lists event contracts on a CFTC-regulated exchange, where each yes/no contract settles at $1 or $0 on the expiration date based on the outcome. That framework is different from traditional sports betting governed by state sports gambling laws, and service spans multiple states, including Texas.
Do you pay taxes on Kalshi profits?
Yes, trading profits are taxable. Depending on activity, you may get tax forms from the company, so keep records of deposits, withdrawals, and P/L, and talk with a tax professional about how to report your predictions. The good news is that Texas doesn’t have a state income tax, so residents will only have to pay federal income tax on Kalshi winnings.
Another legal exchange that may be coming to Texas soon is Polymarket! See the guide from RotoGrinders for more details.