Yes, prediction markets are legal in the United States when operated by CFTC-regulated platforms like Kalshi or under state gaming licenses like Fanatics Markets and FanDuel Predicts. Always check your state's specific regulations before trading.
Best Prediction Market Apps in February 2026: Your Complete Guide to Trading the Future
I've been trading on prediction markets since late 2024, and the explosion of new platforms in 2025 changed everything. What started as a niche corner of the internet during the 2024 presidential election has become a $63.5 billion industry with CFTC-regulated apps, household names like DraftKings and FanDuel entering the space, and millions of mainstream users now trading on everything from sports to economics.
If you're looking for the best prediction market apps in February 2026, you're in the right place. I've tested every major platform available right now, and this guide breaks down exactly what each app offers, who it's best for, and how to get started. Whether you're interested in election prediction markets, sports outcomes, or financial events, I'll help you find the right fit.
Table of Contents
What Are Prediction Markets?
Prediction markets let you trade contracts on real-world events, from who wins the Super Bowl to whether interest rates will drop. Unlike traditional sports betting where you're wagering against a house, you're trading with other users who hold different views. Contract prices range from $0.01 to $0.99, reflecting the crowd's collective belief about how likely an outcome is to occur.
The beauty of these markets is that odds aren't set by a bookmaker. Instead, prices move in real time based on supply, demand, and new information, just like stock markets. If you believe an event will happen, you buy a "Yes" contract. If it resolves in your favor, you earn $1 per contract. If you think it won't happen, you buy "No" and profit if the event doesn't occur.
I've found prediction markets more transparent than traditional betting because you can see exactly how the market views an event's probability at any moment. Plus, most platforms now offer early cash-out options, letting you lock in profits or cut losses before events resolve.
Top Prediction Market Apps in February 2026
The prediction market space has matured dramatically. Eight platforms now dominate the U.S. market, each serving different types of traders. Here's my breakdown of the best prediction market apps based on hands-on testing.
#1 Ranked
Kalshi
🏆 Best for: Experienced traders seeking deep market coverage
Kalshi remains the pound-for-pound champion of prediction markets in my book. As one of the first CFTC-regulated platforms to launch, Kalshi has built the most comprehensive market coverage available.
- Regulation: CFTC-regulated
- Sign-up Bonus: $10 with code COVERS
- Deposit Fees: 2% on debit cards
- Markets: Sports, Politics, Economics, Culture
#2 Ranked
Polymarket
⛓️ Best for: Crypto-native traders valuing transparency
Polymarket is the world's largest prediction market by volume, and it's preparing to officially enter the U.S. market after operating globally for years. Built on blockchain infrastructure with full on-chain verification.
- Regulation: Decentralized platform
- Sign-up Bonus: $10 with code COVERS
- Deposit Method: Cryptocurrency (USDC)
- Markets: Global coverage, all categories
#3 Ranked
Fanatics Markets
🏈 Best for: Sports fans wanting trusted brand entry
Fanatics Markets launched in December 2025 and immediately made waves by rolling out across 24 states. Built by the sports merchandise giant with integrated ecosystem and responsible gaming features.
- Available: 24 states
- Markets: Sports, Finance, Politics, Culture
- Integration: Fanatics ecosystem wallet
- Pricing: Powered by Crypto.com
#4 Ranked
FanDuel Predicts
🎯 Best for: Existing FanDuel users seeking integration
FanDuel Predicts launched in late 2025 and brought the trusted FanDuel brand into prediction markets. Seamlessly integrates with FanDuel Sportsbook for easy bankroll management and 24/7 support.
- Available: 18 states
- Trading Fees: 2.5% maker-taker model
- Support: 24/7 live chat
- Markets: Sports-focused + entertainment
#5 Ranked
DraftKings Predictions
💰 Best for: Traders wanting liquidity rebates
DraftKings entered the prediction market space in Q4 2025 with massive backing. Features unique Market Maker Mode that lets you earn rebates when providing liquidity to the market.
- Available: 16 states
- Unique Feature: Market Maker Mode
- User Base: 5M+ monthly active users
- Markets: Sports, politics, finance
#6 Ranked
Underdog Predict
🎲 Best for: Player prop enthusiasts
Underdog Predict carved out a niche by focusing exclusively on player prop-style prediction markets. Perfect for traders who love betting on individual player performances with same-game parlay options.
- Available: 30+ states
- Sign-up Bonus: Up to $100 in bonus cash
- Specialty: Player props & parlays
- Markets: Sports-only focus
PLAY FREE SWEEPSTAKES 1M GC + 2.5 SC
Kalshi vs Polymarket: Which Platform Is Right for You?
The Kalshi vs Polymarket question comes up constantly, and the answer depends on what you value most. Both are top-tier platforms, but they serve different trader profiles.
| Feature | Kalshi | Polymarket |
|---|---|---|
| Regulation | CFTC-regulated, U.S.-based | Decentralized, preparing U.S. launch |
| Deposit Methods | Bank transfer, debit, Apple/Google Pay, crypto | Cryptocurrency only (USDC) |
| Trading Fees | 2% deposit fee on debit cards | Gas fees + minimal platform fees |
| User Experience | Familiar app interface, plug-and-play | Wallet-based, crypto-native |
| Transparency | Traditional platform records | On-chain verification for every trade |
| Market Depth | Excellent, fast-moving markets | Deepest global liquidity |
| Customer Support | Email/chat (not 24/7) | Community-driven support |
Choose Kalshi if you want regulatory oversight, traditional payment methods, and a polished mobile experience. Choose Polymarket if you value decentralization, on-chain transparency, and are comfortable managing a crypto wallet.
I personally use both, Kalshi for quick trades with fiat currency, and Polymarket when I want to verify trade settlement on-chain or access markets not available on Kalshi.
Election Prediction Markets in 2026
The 2026 midterm elections have brought massive volume to election prediction markets. With control of the House and Senate up for grabs, traders are pouring money into markets predicting congressional outcomes, gubernatorial races, and ballot initiatives.
Kalshi currently leads in election market volume, offering contracts on House control, Senate seats, and state-by-state governor's races. Polymarket's international users are also heavily trading U.S. election markets, and PredictIt continues to dominate ultra-specific questions like "Will Senator X vote yes on Bill Y?"
What makes election prediction markets so compelling in 2026 is real-time price movement as polls, news, and campaign events unfold. I watched markets shift 20+ percentage points in hours after key debates and breaking news stories. If you're a political junkie, there's no better way to engage with election cycles than putting your money where your analysis is.
Important note: The CFTC has signaled renewed regulatory focus on election markets in February 2026, emphasizing federal oversight of event contracts. Some state regulators have pushed back, creating an evolving legal landscape that could impact market availability.
Regulatory Landscape
The regulatory environment for prediction markets tightened in early 2026. The CFTC came out swinging in February, intervening in state-level court battles and asserting federal jurisdiction over event contracts. This creates tension with state gaming regulators who argue they have authority over prediction markets operating within their borders.
For users, this means you need to pay attention to where platforms are legally available. Kalshi, as a CFTC-regulated Designated Contract Market, operates nationwide. Fanatics Markets, FanDuel Predicts, and DraftKings Predictions operate state-by-state based on gaming licenses. Polymarket's U.S. launch will likely follow a phased rollout as regulatory clarity emerges.
The good news? Regulatory attention is pushing the industry toward clearer rules, better consumer protections, and more institutional participation. The prediction market space is maturing fast.
How to Choose the Best Prediction Market App
Picking the right platform depends on your priorities. Here's my framework:
- If you want the most markets: Choose Kalshi or Polymarket for broad coverage across sports, politics, finance, and culture
- If you're a sports-only trader: FanDuel Predicts, DraftKings Predictions, or Underdog Predict offer the best sports-focused experiences
- If you value brand trust: Fanatics Markets, FanDuel, and DraftKings bring household names and proven customer support
- If you're crypto-native: Polymarket or ForecastEx give you on-chain verification and decentralized infrastructure
- If you're a political trader: PredictIt remains unbeatable for niche government markets, while Kalshi offers better fees for major elections
- If you want the lowest fees: Polymarket (gas fees only) or DraftKings (with Market Maker Mode rebates)
I recommend starting with Kalshi or Fanatics Markets if you're new to prediction markets. Both offer intuitive interfaces, trusted brands, and easy fiat on-ramps. Once you're comfortable, expand to Polymarket for deeper liquidity and FanDuel/DraftKings if you're sports-focused.
🎯 Prediction Markets FAQ (February 2026)
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