Is Kalshi legal in Texas? What Kalshi's terms, the Penal Code and the Texas Senate say
Kalshi's Member Agreement, read on 27 October 2026, names no US state as restricted, so it accepts Texas users. Texas Penal Code section 47.02 makes betting on a game or an election a Class C misdemeanor, but no Texas cease-and-desist or lawsuit against Kalshi was found. The Lieutenant Governor's 2026 interim charges tell the Senate State Affairs Committee to study prediction markets.
Kalshi takes users in Texas. Its Member Agreement, read on 27 October 2026, names no US state in its Section VI list of restricted jurisdictions, and no Texas agency has sent Kalshi a cease-and-desist or sued it on the record found. Texas law still makes betting on a game or an election a Class C misdemeanor, and since 27 March 2026 a Senate committee has been told to study prediction markets.
Documents read on 27 October 2026: Kalshi's Member Agreement and help centre, Texas Penal Code chapter 47 on the Legislature's site, the Lieutenant Governor's 2026 interim charges, and the Supreme Court docket in case 26-299 with the states' amicus brief. This is not legal advice.
Does Kalshi allow Texas users?
Yes, by its own documents. Section VI of the Member Agreement bars trading for anyone "domiciled in, organized in, or located in" a listed jurisdiction, and the list is countries and sanctioned territories. No US state is named. The help centre's sign-up article, dated 10 March 2026, asks that a user "Be 18 years or older" and points to "international jurisdictions" for restrictions.
Section VI also has the user promise they are not located anywhere trading is barred:
located in any jurisdiction in which trading Event Contracts on the Platform is prohibited under Applicable Law or by Kalshi policy.
That representation sits with the user. Whether Texas law "prohibits" trading a CFTC-listed event contract is the open question, and no Texas court or agency has answered it in a document found for this page.
Is sports betting legal in Texas?
No. Penal Code section 47.02(a) says a person commits an offense if he:
(1) makes a bet on the partial or final result of a game or contest or on the performance of a participant in a game or contest; (2) makes a bet on the result of any political nomination, appointment, or election or on the degree of success of any nominee, appointee, or candidate
Section 47.02(d) makes it "a Class C misdemeanor". Section 47.01 defines a bet as "an agreement to win or lose something of value solely or partially by chance", and excludes insurance and prizes for contestants in bona fide contests of skill, but not derivatives. On the operator side, section 47.03 makes it a Class A misdemeanor to sell "chances on the partial or final result of" a game or an election. Texas has no state regulator for online sportsbooks or online casinos; the Texas page of the state guide records that.
Read literally, those two subsections cover both Kalshi's sports contracts and its election contracts. Kalshi's argument everywhere is that federal law preempts state gambling law for contracts on a CFTC-designated exchange. No Texas court has ruled on that argument in a case found for this page.
What has Texas done about Kalshi?
It has asked a committee to study it. The Lieutenant Governor's 2026 interim charges, released 27 March 2026, give the State Affairs Committee this charge:
Closing Gambling Loopholes: Study the sudden inundation of prediction market gambling and the exploitation of federal law to circumvent Texas gambling prohibitions by allowing users to place bets on the outcome of elections and other events.
My statement announcing 2026 Interim Charges to the Texas Senate. To read the interim charges, click here:
The charge goes on: "Examine the relationship between federally regulated derivative markets and state-prohibited gambling. Make recommendations to ensure the integrity of Texas elections and Texas sports." Interim charges lead to a report and recommendations for the next session. They do not change the law. No hearing record or report on the charge was found.
No cease-and-desist letter, no lawsuit and no regulator notice from a Texas agency against Kalshi was found. The state guide found no Texas regulator that licenses sports betting, so there is no sports betting commission to send one.
Where does Texas sit in the preemption fight?
On the sidelines, on the documents read.
| Question | Texas | Source |
|---|---|---|
| Kalshi lists Texas as restricted | No | Member Agreement, Section VI |
| State cease-and-desist or lawsuit | None found | Searched 27 Oct 2026 |
| Signed Ohio Sixth Circuit brief, June 2026 | Not listed | California AG release |
| Signed states' Supreme Court brief, 7 Oct 2026 | Not listed | Brief No. 26-299 |
| Legislative study | State Affairs charge | Interim charges, 27 Mar 2026 |
The states' brief in Flaherty v. KalshiEX, filed 7 October 2026, is signed for "Ohio, 38 Other States, and the District of Columbia". Its signature block does not list a Texas attorney general. The 37 attorneys general on the June brief for Ohio, as listed by California's Attorney General, do not include Texas either. A Texas group, Texans Against Gambling, is among the amici on a separate brief on the same docket. The Supreme Court has not decided whether to hear the case; Kalshi's response is due 9 November 2026.
Texas sits in the Fifth Circuit. No Fifth Circuit ruling on Kalshi was found. The circuit split so far, Third Circuit for Kalshi and Sixth and Ninth against, is set out in Is Kalshi gambling?.
What does it mean for a Texas account?
On Kalshi's terms, a Texas account works like any other US account until Kalshi or a court says otherwise. Kalshi reserves the right, "in its sole and absolute discretion, to grant, deny, condition, suspend, or revoke membership or access to the Platform". Item J of the member acknowledgements in Section VI says that within 90 days of an ACH deposit those funds "may only be withdrawn to the external account from which they were debited". The agreement does not say what happens to open positions if a state is switched off.
The Penal Code offense in section 47.02 is written against the person who makes the bet, not only the operator. No prosecution of a Texas user over an event contract was found.
Gains are taxed federally whatever Texas calls them. See Kalshi and Polymarket taxes. The platforms are compared in Polymarket vs Kalshi, and every state is in Is Kalshi legal in my state?, including California and Florida.
Quick answers
Is Kalshi banned in Texas?
No. Kalshi's Member Agreement, read 27 October 2026, names no US state as restricted, and no Texas cease-and-desist or lawsuit was found. See the Texas page.
Is betting on elections illegal in Texas?
Penal Code section 47.02(a)(2) makes a bet on "the result of any political nomination, appointment, or election" a Class C misdemeanor. Whether that reaches a CFTC-listed contract has not been tested in a Texas court.
Is Texas going to ban prediction markets?
The Senate State Affairs Committee was told on 27 March 2026 to study them and make recommendations. No bill or report was found.
Did Texas join the states against Kalshi at the Supreme Court?
No. Texas is not listed on the brief for Ohio, 38 other states and DC filed on 7 October 2026 in case 26-299.
Where can I get help with gambling in Texas?
The National Problem Gambling Helpline is 1-800-MY-RESET (1-800-697-3738), with call, text and chat. More options are on the responsible gambling page.
Sources
- Kalshi Member Agreement, undated PDF, Section VI, retrieved 27 October 2026
- Kalshi Help Center, Signing Up as an Individual, dated 10 March 2026, retrieved 27 October 2026
- Texas Penal Code chapter 47, Gambling, Texas Legislature, retrieved 27 October 2026
- Lieutenant Governor Dan Patrick, 2026 Interim Charges to the Texas Senate, released 27 March 2026, retrieved 27 October 2026
- Lieutenant Governor Dan Patrick, release of 2026 interim charges, 27 March 2026, retrieved 27 October 2026
- Flaherty v. KalshiEX LLC, US Supreme Court No. 26-299, docket, retrieved 27 October 2026
- Brief of amici curiae Ohio, 38 other states and the District of Columbia, No. 26-299, filed 7 October 2026, retrieved 27 October 2026
- California Attorney General press release listing the 37 attorneys general on the Ohio Sixth Circuit brief, 12 June 2026, retrieved 27 October 2026
- National Council on Problem Gambling, National Problem Gambling Helpline, retrieved 27 October 2026
About this piece
Compiled by the CryptoGuardz register team from the sources listed above. Research and drafting are AI-assisted and reviewed by a named editor before publication. Nothing here is a recommendation to gamble. If a figure or a reading is wrong, tell us and the correction is logged in public.