Are prediction markets legal in Iowa?

Prediction markets are available in Iowa, but Kalshi lost a bid to block Iowa's gambling laws in September 2026 and is appealing. Iowa law makes taking sports wagers without a licence a felony. We found no enforcement action filed yet against any platform.

Prediction markets are available in Iowa, but the legal ground is shaky. As of October 17, 2026, a federal judge has refused to block Iowa’s gambling laws from applying to Kalshi, and Kalshi’s appeal is in its early stages. We found no Iowa enforcement action filed against Kalshi or any other platform.

Iowa’s position

Iowa allows sports betting, including online, through licensees of the Iowa Racing and Gaming Commission. Under Iowa Code § 99F.9 an eligible bettor must be “at least twenty-one years of age,” and “an unlicensed person taking or receiving sports wagers from residents of this state is guilty of a class ‘D’ felony.”

Kalshi in Iowa

Kalshi sued Iowa’s Attorney General and the Gaming Commission on March 11, 2026, after a meeting with the Attorney General’s office. On September 8, 2026, Judge Stephen H. Locher denied Kalshi a preliminary injunction: “Kalshi is unlikely to succeed on the merits of its argument that the Commodity Exchange Act preempts Iowa gambling laws and regulations.” Kalshi appealed to the Eighth Circuit, where its opening brief is due November 6, 2026. That ruling means Iowa is free to enforce, but we found no enforcement filed. See is Kalshi legal?

Other platforms

We found no Iowa action against Polymarket US, Novig, PredictIt or Robinhood. DraftKings and FanDuel don’t offer sports contracts in Iowa, where they run licensed sportsbooks. For every state side by side, see our legality tracker.

Not legal or betting advice. 18+ (21+ where required). Prediction markets involve risk of loss — only trade what you can afford to lose. Gambling problem? Call or text 1-800-MY-RESET (National Problem Gambling Helpline, 24/7).