Prediction Markets in Texas | Texas News

Texas News Today | 2 Min News | The Daily News Now! · Jul 11, 2026 · 2m

Prediction markets like Kalshi and Polymarket are thriving in Texas despite state gambling bans, thanks to federal CFTC oversight that classifies them as “event contract markets.” Unlike traditional sportsbooks, users trade contracts with each other, betting on outcomes whose value shifts with market sentiment—worth $1 if correct, $0 if wrong. This model’s legality has sparked alarm among Texas officials, including Lt. Gov. Dan Patrick, who’s calling it a “gambling loophole” and pushing for Senate review to impose protections like age limits and advertising restrictions. But the real tension…