Are prediction markets legal in Alabama? They are at the moment, as long as you use CFTC-regulated exchanges like Polymarket, Kalshi, and Crypto.com. However, The landscape is changing quickly, so make sure to check back here for updates.
For those who are new to the concept, prediction markets allow you to buy and sell event contracts for future outcomes, including sports games, political elections, and more. If you make correct predictions, you win money, and if not, you lose it. Most prediction markets come with binary even contracts, meaning that you can buy Yes or No positions.
18+ Only. Restrictions and eligibility requirements apply. Not available in all jurisdictions. Trading involves high risk and may result in loss of your entire investment. See polymarket.us/tos for more information. The Polymarket US App serves as an independent software provider and affiliate of Polymarket US and Polymarket Clearing, the CFTC-regulated derivatives exchange and clearing organization.
Trading involves risk, including total loss on positions. Trading decisions and their consequences are your sole responsibility. Nothing on underdogexchange.com constitutes a recommendation, solicitation, or offer to buy or sell any financial instrument. UDX is subject to CFTC regulatory oversight. Promotion issued by affiliate.
Prediction markets
are platforms where you can trade event contracts on the outcomes of sports, politics, economics, and other types of events. In a similar vein to traditional sports betting, you have to risk money to potentially win a profit if your prediction is correct. If your predictions are incorrect, you lose your entire outlay.
Prediction Markets in Alabama: Pros and Cons
Pros and Cons
Prediction markets are legal in Alabama
18+ age limit
Most CFTC-regulated prediction markets accept AL traders
Very high risk of losing money
How Event Contracts Work for AL Prediction Markets
Despite this basic similarity, prediction markets are distinctly different from fixed odds sports betting. Instead of wagering against the house, the platforms match your trade with another user. In other words, if you buy 20 “Yes” contracts for a prediction market, another trader must buy 20 “No” contracts.
These event contrasts are always priced between $0.01 and $0.99, at roughly a 1:1 ratio with the probability of the outcome happening. For instance, if the Knicks have a 50% chance of winning their next NBA game, the “Yes” contracts would open at $0.50 per share.
As platforms like Polymarket and Kalshi match you with other traders, the probabilities that you see are a real-time reflection of market opinion. Unlike traditional sportsbooks, prediction markets don’t manipulate or “Juice” the odds to protect their profits. Instead, they provide transparent probabilities, but charge a trading fee.
18+ Only. Restrictions and eligibility requirements apply. Not available in all jurisdictions. Trading involves high risk and may result in loss of your entire investment. See polymarket.us/tos for more information. The Polymarket US App serves as an independent software provider and affiliate of Polymarket US and Polymarket Clearing, the CFTC-regulated derivatives exchange and clearing organization.
Trading involves risk, including total loss on positions. Trading decisions and their consequences are your sole responsibility. Nothing on underdogexchange.com constitutes a recommendation, solicitation, or offer to buy or sell any financial instrument. UDX is subject to CFTC regulatory oversight. Promotion issued by affiliate.
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Example of an Event Contract at Polymarket
Understandably, you may not yet have a clear picture of how these prediction markets work. To provide further context, here is a sports prediction market example we’ve taken from Polymarket at the time of writing:
Market: NBA Champion
🏀 Basketball
📈 Probability
✅ Yes
❌ No
New York Knicks
53%
$0.53
$0.47
San Antonio Spurs
47%
$0.47
$0.53
Here you can see that the Knicks are slight favorites with a 53% chance of winning. As a result, their “Yes” contracts have opened at $0.53. If the Knicks were to win, the market would resolve to “Yes”.
Market Resolution and Payouts If the Knicks Won
In this scenario, Knicks: Yes, and Spurs: No, contracts would both close at $1.00, giving you a $0.47 profit on one of your shares had you bought and held them at this price. On the other hand, Knicks: No and Spurs: Yes would close at $0.00, giving you a $0.47-per-share loss if you had traded on that outcome.
The Best Prediction Market Apps in Alabama
Now that we understand the basics of how prediction markets work, let’s take a look at the top
sports predictions sites
and apps that you can use in Alabama.
📈 Prediction market
🧑⚖ Legal in Alabama
🔞 Age limit
📱 App Store rating
Polymarket
Yes ✅
Yes ✅
4.7 ⭐
Kalshi
Yes ✅
Yes ✅
4.7 ⭐
Crypto.com
Yes ✅
Yes ✅
N/A
Polymarket – The Top AL Prediction Market App
Excellent trading coverage
Powerful mobile app
Speedy deposits and withdrawals
Peer-to-peer exchange
Watertight security provisions
Steep learning curve
Visit Polymarket
Polymarket now has a US-facing prediction market site and app that’s headquartered in New York. It’s regulated by the CFTC and accepts traders aged 18+ in most states. Including Alabama. Here, you can trade a range of markets, including sports, esports, crypto, and finance predictions.
When it comes to purchasing your event contracts, you can buy either in shares or dollars, with the option to place a limit order to prevent negative slippage. Polymarket only charges a “Taker” fee, meaning that you only have to pay a charge if you take a trade on an existing order.
There are no maker fees, meaning that if you create a new trade and wait for a taker, you pay nothing besides the contract price if the trade executes. Of course, the tradeoff here is that you risk the trade not going through.
Kalshi – The First Prediction Market in Alabama
Accessible across the US
Simple to use
Explore niche and mainstream markets
Integrated prediction tools
Limited ongoing bonus offers
Visit Kalshi
Kalshi was the first prediction market site to launch in the US, and though it now has restrictions imposed in nine states, it’s still legal in Alabama. That said, the landscape is moving quickly with this site in particular due to the risky nature of prediction market trading. Therefore, we advise that you bookmark this page and check back for updates/
On this platform, you can buy and sell event contracts for sports events, political elections, and crypto price outcomes. Additionally, there are some unique markets on this site, including the “Mentions” category. For example, you can predict what phrases the US President will say during his next press conference.
The fees for all of these markets are charged based on your expected profits, and the structure is quite complicated. Sometimes you are charged maker fees, but they can be waived under certain circumstances.
Crypto.com – The Beginner-friendly Option for AL Traders
Level-Up Rewards available
Welcome offer for standard trading
Predict future prices for crypto
Choose yes/no contract positions
Complex for newcomers
Visit Crypto.com
Crypto.com is a CFTC-regulated exchange that’s permitted to offer prediction market trading to users aged 18+ in most states, including Alabama. However, it is completely prohibited in Arizona and New York, with some instructions imposed if you’re using the site in Nevada, Ohio, Michigan, Maryland, Massachusetts, New Jersey, and Illinois.
While it lacks some of the market diversity and real-time tracking features of the two platforms mentioned above, the user interface is more user-friendly. For this reason, we would recommend it as the best option for beginner traders. Just educate yourself and think carefully about the risk before you sign up and trade.
The app is called OG instead of crypto.com, and is currently only available on Android devices. There’s a flat $0.02 fee for all event contracts, which is waived if you hold them until the market is resolved.
Sponsored by Crypto.com – Not investment advice. Trading prediction markets and crypto involves risk, including potential loss of your stake. Consider your risk tolerance before participating. Crypto.com connects U.S. users to CDNA (regulated by CFTC) for derivatives trading. CDNA membership required. Trading may not be suitable for all—you could lose your entire investment plus fees. Past performance doesn’t guarantee future results. This is not a solicitation or recommendation to trade.
Conclusion – Prediction Markets Are Legal in Alabama.
To summarize what we’ve learned, the bottom line is that prediction markets are legal in Alabama. To trade these event contracts, you must be over 18 and use a CFTC-regulated prediction market platform like Kalshi, Polymarket, or Crypto.com.
Despite its legality, prediction market trading is extremely risky, and there’s a high chance that you could lose money. If you’re comfortable with the risk and want to engage in small-volume trading, you can access any of the legal prediction markets via our on-page banners.
18+ Only. Restrictions and eligibility requirements apply. Not available in all jurisdictions. Trading involves high risk and may result in loss of your entire investment. See polymarket.us/tos for more information. The Polymarket US App serves as an independent software provider and affiliate of Polymarket US and Polymarket Clearing, the CFTC-regulated derivatives exchange and clearing organization.
Trading involves risk, including total loss on positions. Trading decisions and their consequences are your sole responsibility. Nothing on underdogexchange.com constitutes a recommendation, solicitation, or offer to buy or sell any financial instrument. UDX is subject to CFTC regulatory oversight. Promotion issued by affiliate.
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Are Prediction Markets Legal in Alabama? FAQ
Prediction markets sites are legal in most of the US, including Alabama, for persons aged 18+. However, you must trade solely on CFTC-regulated sites, and the legal status is changing quickly in many states.
As it stands, most CFTC-regulated prediction market exchanges are legal in Alabama, though the state may move to ban them in the future. Your best options are highly-rated and regulated sites like Polymarket, Kalshi, and Crypto.com.
Yes, Alabama could follow states like Nevada and Missouri in banning prediction markets one day. However, if lawmakers made a move, it would likely take a while, as the prediction market operators have faced legal challenges in all states where they have arisen thus far.
