Kalshi is everywhere now, in all news. But what is it? Kalshi is a prediction market exchange that lets you trade on real-world events, from NFL games and inflation numbers to elections and the weather. Instead of betting against a sportsbook, you buy and sell contracts with other users, and the price of each contract reflects what the market thinks will happen.
If you’ve ever wondered “Is Kalshi legit?”, the short answer is yes. Kalshi is a federally regulated exchange overseen by the Commodity Futures Trading Commission (CFTC), not a New Jersey-licensed sportsbook. That difference is exactly why it has spent more than a year and a half in court with the state, and why it still operates here today.
Is Kalshi legal in New Jersey?
Yes, for now. On March 27, 2025, New Jersey’s Division of Gaming Enforcement sent Kalshi a cease-and-desist letter over “unauthorized sports wagering.” Kalshi sued, and on April 28, 2025, a federal judge in New Jersey granted it a preliminary injunction. The Third Circuit upheld that injunction on April 6, 2026, holding that Kalshi’s sports contracts are swaps traded on a CFTC-regulated exchange, so the state can’t regulate them as gambling.
New Jersey asked the US Supreme Court to hear the case on September 2, 2026, and Kalshi’s response is due November 9, 2026. Other courts have gone the other way: the Ninth Circuit sided with Nevada in August 2026, and the Sixth Circuit with Ohio and Tennessee. We follow the case in our report on Kalshi vs. New Jersey at the Supreme Court.
Until that’s settled, Kalshi operates in New Jersey across all of its categories, including sports. You have to be 18 to trade, compared with 21 at New Jersey’s licensed sportsbooks.
Who owns Kalshi?
Kalshi Inc. was founded in 2018 by Tarek Mansour and Luana Lopes Lara, two MIT graduates who wanted to build a regulated marketplace for trading on events. The company is headquartered in New York City and has grown fast since sports contracts took off: in March 2026, sports made up about two-thirds of its trading.
How does Kalshi work?
It is easy to get started:
- Pick a market. Every market is a yes-or-no question, such as whether the Giants win on Sunday or whether the Fed cuts rates.
- Buy Yes or No contracts. Instead of traditional betting odds, contracts trade between 1 cent and 99 cents. A price of 62 cents means the market sees roughly a 62% chance.
- Watch the market move. Prices change with news and demand, and you can sell your contract at the market price before the event ends.
- Settle the trade. If you’re right, each contract pays $1. If you’re wrong, you lose what you paid.
Unlike online sportsbooks, where the book sets the odds and takes the other side of your bet, Kalshi works more like a stock market for predictions. You trade against other users, and Kalshi makes its money from trading fees. The fee is highest when a contract is priced near 50 cents, where uncertainty is greatest, and falls toward the extremes.
Kalshi markets and categories
Kalshi lists event contracts across several categories:
- Sports – NFL, NHL and other pro games, including New Jersey’s teams.
- Economics – inflation readings, jobs reports and interest rate decisions.
- Politics – elections and policy outcomes.
- Weather – temperatures, storms and other weather events.
- Culture and entertainment – awards shows and other headline events.
Kalshi vs. a New Jersey sportsbook
| Kalshi | NJ-licensed sportsbook | |
|---|---|---|
| Regulator | CFTC (federal) | NJ Division of Gaming Enforcement |
| Minimum age | 18 | 21 |
| You trade against | Other users | The sportsbook |
| Cash out early | Sell your contract at market price | Cash-out offer set by the book |
| NJ self-exclusion applies | No | Yes |
The last row matters. Kalshi isn’t covered by New Jersey’s self-exclusion program, so the protections you get at a licensed sportsbook don’t carry over. Winnings are also taxable income at the federal and state level.
Kalshi vs. Polymarket
Polymarket started offshore, but its US version, Polymarket US, now runs on QCEX, a CFTC-licensed exchange and clearinghouse it bought in 2025. Like Kalshi, it operates under federal rather than state oversight and lists sports alongside politics and economics. The difference for New Jersey users is legal certainty: the Third Circuit ruling covers Kalshi, not every company offering similar contracts, and reports differ on whether Polymarket US is opening new accounts in New Jersey.
Bonuses and promotions
Unlike sportsbooks such as bet365, Kalshi isn’t built around deposit matches or bonus bets. If you want a welcome offer on your sports picks, New Jersey’s licensed apps are where you’ll find them, and our NJ promo codes page lists the current ones.
Kalshi pros and cons
Pros:
- Federally regulated by the CFTC
- Markets well beyond sports, from the economy to the weather
- Sell your position at any time before settlement
- Open to 18-year-olds
Cons:
- Its New Jersey status depends on a case the Supreme Court may still take
- Not covered by New Jersey’s self-exclusion program
- No sportsbook-style welcome bonuses
- Fees are highest on the closest calls
Should you use Kalshi?
If you want to trade on economic data, politics or the weather, Kalshi is one of the few regulated places to do it, and in New Jersey it also covers sports. If you mainly bet on sports and want bonuses, a licensed NJ sportsbook still offers more, plus the state’s player protections. Compare every option in our guide to prediction markets in New Jersey.
18+ (21+ at NJ sportsbooks). Gambling problem? Call 1-800-GAMBLER.
