Quick Facts About Prediction Markets in Alabama
- Prediction markets are available in Alabama, but they are regulated on the federal level.
- Crypto.com, Kalshi, and OG are the top three prediction markets in Alabama.
- AL traders must meet the minimum age requirement and complete KYC before depositing and trading event contracts.
Are Prediction Markets Accessible in Alabama?
Alabama itself does not have any state-level regulations regarding prediction markets. However, these platforms offer event contracts, which are considered commodity swaps and are regulated by the Commodity Futures Trading Commission (CFTC). Since they are under federal supervision, they can operate in states such as Alabama.
While prediction markets can offer services in AL, not all do. That’s because most brands have their own geographical restrictions, and AL might be on the list. On the bright side, many of the top CFTC-regulated prediction markets are available to traders in Alabama, so you have a decent number of platforms to select from.
The Best Prediction Markets in Alabama
Now that you know
prediction markets are legal
in Alabama, let’s look at the best ones to use:
| Prediction market | Welcome bonus |
Crypto.com: Pros & Cons
- Competition-based promotions
- iOS & Android apps
- Minimalist website design
- Beginner-friendly
Crypto.com stands out as one of the first exchanges to provide licensed sports event contracts in the United States. However, it covers a lot more than sports. There are event contracts for political events, entertainment, and economic milestones.
While the exchange has a mobile application, its prediction market is only available via the app. Its mobile apps for both Android and iOS devices are well-designed, with a clean interface that makes it easy to place trades. Plus, you get to claim a welcome bonus of up to 1 BTC after registering, though this is for standard trading, not its prediction market.
As a CFTC-regulated platform, Crypto.com uses encryption protocols to safeguard traders' details. For deposits, it supports fiat and crypto payment methods, while withdrawals are possible via bank transfers. The prediction market does not charge anything for deposits, but there are trading fees ranging between $0.02 and $0.1 per contract.
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.
Kalshi – Extensive Event Coverage
Kalshi: Pros & Cons
- Fully CFTC-regulated exchange
- Diverse markets including sports, politics, and economics
- Supports PayPal, Venmo, and Crypto deposits
- Highly rated mobile app for iOS and Android
- Trading fees apply to both makers and takers
- Bank withdrawals can take several business days
When it comes to event coverage, Kalshi scores highly. The prediction market offers hundreds of event contracts across elections, cryptocurrency, sports, and economics. Trading these contracts is a breeze, thanks to the website’s intuitive interface. And if you prefer to trade on your smartphone, you can download the iOS or Android app, depending on your device.
The prediction market has a unique social feature that gives you more to look forward to besides predicting event outcomes. Thanks to this feature, you can post your thoughts, share tips, and see/bookmark posts from other traders. Another tool is the live graph, which you can use to track the prices of various contracts.
As a new trader at Kalshi, you qualify for a $10 welcome bonus after making your first trade of at least $10. This is in addition to various bonus systems like the volume incentive program that rewards you based on your trading volume on the platform.
OG – Up to $100 Trading Bonus
OG: Pros and Cons
- Secure and regulated by the CFTC
- No user limiting on trades
- Wide range of market categories
- Great National Championship offer
- Sports contracts are restricted in some states
Unlike many prediction markets that have little to no welcome offers, OG has a generous signup bonus of up to $100. You receive the bonus in parts after completing specific trading milestones. If you refer new traders using your custom link on the platform, you can get up to $150 in bonuses. But like the welcome offer, your referral must complete certain trading milestones for you to qualify for the bonus.
OG does a decent job in terms of event coverage. It offers contracts for various categories, including sports, economics, politics, entertainment, and climate. You can trade these event contracts after funding your account using any of the payment methods it supports. These include Plaid, debit cards, Google Pay, Apple Pay, Venmo, and bank transfers.
Another noteworthy feature is its social ecosystem, a dedicated section where you can interact with fellow traders. If you have any questions when trading on the platform, you can contact support through live chat or email. To get started or even learn more, visit OG.com.
Prediction Trading is facilitated through Crypto.com | Derivatives North America (CDNA). Foris DAX Inc. and Foris Inc. (d/b/a OG ) provide access to CDNA, a platform regulated by the U.S. Commodity Futures Trading Commission (CFTC), allowing users to trade derivatives in accordance with CDNA’s rules and regulations.
How to Get Started on Prediction Markets from Alabama
Trading on
prediction market apps
and sites is easy. First, you register, make a deposit, and claim the welcome bonus if you’re interested. Then, buy event contracts and see if your predictions are accurate. Below is a more detailed breakdown of the process:
-
Pick a prediction market and register. We have made this easier by providing you with the top three prediction markets in Alabama. Select one, click the banner to launch the site, and tap the register/signup button. Fill in your details on the registration form. This can include, but is not limited to, your full name, address, and phone number.
-
Complete verification. In line with CFTC regulations, prediction markets require every trader to complete KYC verification. You might not have to do this right after registering, but you’ll eventually have to before depositing or cashing out winnings. For KYC, you need valid documents that show who you are and your address. These documents include a government-issued ID card and a utility bill or a bank statement.
-
Fund your account. Once your account is up and running, making a deposit is the next step. To do this, click the wallet icon, which is usually located at the top of your account dashboard. Select one of the available payment methods, enter the amount you want to deposit, and authorize the transaction. Wait a few minutes for your funds to reflect in your trading account balance. If there’s a welcome bonus, check the requirements you must meet to claim it. On platforms like OG and Kalshi, you need to make a trade to unlock the offer.
-
Buy event contracts. Navigate to the trading section and choose an event category. Select one of the available markets and decide if you want to get Yes or No contracts. Enter the number of event contracts you want to buy or how much you want to spend on the trade. Most platforms will display the potential returns you will get if your trade is successful.
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Sell your contracts or wait till the event settles. There is always an option to sell your event contracts before the market settles. In that case, you don’t have to worry about the final outcome. If you decide to wait till the event settles, you get your wins if your prediction is accurate. Not that you receive a $1 payout per contract for accurate predictions and $0 per contract if the prediction is not correct.
Hits and Misses of Prediction Markets in Alabama
There are several upsides to using prediction markets in Alabama, but also a few downsides to keep in mind. Below is a summary of the pros and cons:
Pros and Cons
- Simple binary trading format
- Top platforms are regulated at the Federal level
- Buy and sell contracts before the event settles
- Markets for various events
- Prices fluctuate
- There’s always a risk of losing trades
Trade on the Best Prediction Markets in Alabama
With prediction markets being regulated at the federal level, Alabama traders can sign up and use these platforms without hassle. Of course, you must be sure that the brand does not restrict its services in AL before creating an account. You also need to meet the minimum age requirement, which platforms verify through KYC checks.
To ensure you use only the best prediction markets, we reviewed and recommended the top ones: Crypto.com, Kalshi, and OG. Now, it’s up to you to choose one or more of them. You will find their individual banners on this page. Clicking on these banners takes you to their official websites, where you can sign up, deposit, and start trading.
Top Forecasting Market Sites
1.
Open Kalshi
18+ and present in participating states. Terms and conditions apply. http://kalshi.com/tc/500
2.
Deposit $10 get a $20 Trading Bonus
Open Polymarket
18+ Only. Restrictions and eligibility requirements apply. Not available in all jurisdictions. Trading is risky. 100% loss can occur. See polymarket.com/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 exchange and clearing organization.
3.
4.
Trade $10, Get $10 Welcome Offer
Open OG
18+ If you or someone you know has a gambling problem, call 1-800-GAMBLER Prediction is an event contract that is a derivatives product offered by Crypto.com: Buy, Sell & Trade Crypto with a Trusted App | Derivatives North America (CDNA), a CFTC-regulated exchange through OG technology. Trading on CDNA involves risk and may not be appropriate for all. By trading you risk losing your cost to enter any transaction, including fees. You should carefully consider whether trading on CDNA is appropriate for you in light of your investment experience and financial resources. Any trading decisions you make are solely your responsibility and at your own risk. Terms apply. Trading involves risk of loss. Bonus credits cannot be withdrawn immediately.
5.
Are Prediction Markets Legal in Alabama? FAQs
🏷️ What Types of Event Contracts Can I Trade in Alabama?
You can trade event contracts for various categories, including sports, politics, economics, and pop culture. The exact event coverage you will find depends on your selected platform. No matter the category, you focus on buying and selling Yes/No contracts tied to real-life outcomes.
💰 Are My Winnings from Prediction Markets Taxed in Alabama?
Yes, they are. Alabama does not have a separate tax rule for prediction markets, but it treats your winnings as taxable income. This means you must report any winnings from trading on prediction markets on your annual tax return.
🎁 Do Prediction Market Apps in Alabama Offer Bonuses?
Yes, prediction markets offer bonuses to Alabama traders. These can range from welcome bonuses to incentive programs and referral bonuses. Note that these offers have terms and conditions, so read the fine print before claiming them.
For guidance on responsible trading and risk awareness, the following free official resources are available:
To make sure you get accurate and helpful information, this guide has been edited by
Mac Douglass
as part of our fact-checking process.
Advertiser disclosure
