Prediction Markets in Connecticut

Connecticut allows CFTC-regulated prediction markets. Residents can use Kalshi, Polymarket, and other major platforms without restrictions.

Prediction markets regulated by the CFTC (Commodity Futures Trading Commission) are generally permitted under federal law across all US states. However, individual states may impose additional restrictions that affect platform availability.

Connecticut taxes capital gains at rates from 3% to 6.99%. Prediction market winnings are subject to state income tax.

At the federal level, prediction market profits are generally reported as capital gains on IRS Form 8949 and Schedule D. The IRS treats prediction market contracts similarly to other financial derivatives. Consult a qualified tax professional for personalized advice.