WebullLegal
Where are Webull’s event contracts available? 3 states with a case, tracked
Last checked against court dockets and filings · Updated
As of Oct 26, 2026, no order we found has switched off any Webull event contracts and in 3 states a lawsuit or regulator’s action is live with nothing switched off. Each is checked against its docket and filings. States that have acted say their gambling law applies, and Webull Futures LLC is a futures commission merchant registered with the CFTC: a licensing dispute, not a tax ruling, and with no IRS guidance people file event contracts three common ways.
By Owen Monagan, Founder & CEOUpdated
Webull by state
Checked Oct 26, 2026- Switched off
- 0
- Ordered, on hold
- 0
- Case pending
- 3
- No action found
- 48
- Switched off
Map
Every state, dated.
Every state sits in one of four groups. Select a state for where it stands and the filing behind it.
Webull’s event contracts are offered by Webull Futures LLC, a futures commission merchant registered with the CFTC. It is not the exchange: the contracts are listed on Kalshi (KalshiEX LLC) and Crypto.com | Derivatives North America (North American Derivatives Exchange, Inc.).
Webull, state by state
As of Oct 26, 2026Connecticut
Case pendingIn September 2026 Connecticut named Webull among nine prediction markets it ordered to stop offering sports contracts to residents. We have not seen the order itself.
- Switched off
- 0
- A court order, or an agreement a court has entered as an order, is in force under which Webull does not offer the covered markets in the state.
- Ordered, on hold
- 0
- The order is paused while the appeal is heard.
- Case pending
- 3
- A lawsuit or regulator's cease-and-desist is live. We found no court order or agreement in force that stops Webull offering contracts.
- No action found
- 48
- We found no order, lawsuit or cease-and-desist naming Webull here.
Event contracts offered through Webull, state by state. Webull Futures LLC, a CFTC-registered futures commission merchant, says in its own disclosures that it may facilitate customer trading in event contracts through Kalshi's exchange and Crypto.com | Derivatives North America. Each action below says which Webull company it names. What a court or regulator has actually done, as it stands on the date above. Tiles are equal in size so a small state reads as clearly as a large one. The state list below holds the same data as text.
What changedSince Oct 26, 2026
Webull cases: what changed since Oct 26, 2026?
No change for Webull since Oct 1, 2026. The last one is below. Last checked Oct 26, 2026.
- Nothing changes for accounts yetThe federal court in Maryland stayed the City of Baltimore's suit against two Webull companies and the other defendants for four months or until the Supreme Court acts on three pending petitions. Filing
Lawsuits3 actions
What states have sued Webull?
As of Oct 26, 2026, two states have taken Webull to court. Two other things also get called suing Webull, and only an order in force switches anything off.
- 01A state or city suesAn attorney general, a gaming regulator or a city goes to court. Only an order in force switches anything off.
- 02Webull sues the state firstWebull asks a federal court to stop a state’s officials enforcing state gambling law against it.
- 03A regulator acts on its ownA cease-and-desist letter or order, or a proposed fine. None of these switches anything off by itself.
| Date | State | Action | Status now | Filing |
|---|---|---|---|---|
| Jun 17, 2026 | Kentucky | Lawsuit. Kentucky Attorney General: Suit against Webull Corporation, with Kalshi's companies, Robinhood and Coinbase Financial Markets. Franklin Circuit Court, No. 26-CI-00689 | Case pending | Filing |
| Aug 13, 2026 | Maryland | Lawsuit. City of Baltimore: Consumer-protection suit against Webull Corporation and Webull Financial LLC, with Kalshi, Robinhood and Coinbase Financial Markets. Circuit Court for Baltimore City, No. C-24-CV-26-005532 | Case pending | Filing |
| Sep 2026 | Connecticut | Cease-and-desist. Connecticut Department of Consumer Protection: One of nine cease-and-desist orders to prediction markets announced by the governor's office. | Case pending | Filing |
Where Webull went to court first
| State | Case | Docket |
|---|
Whether federal commodities law preempts state gambling law is being argued in suits by venues, states and the CFTC. Prediction market legal status by state sets every venue’s cases side by side.
Your money
What these orders mean for your account.
An order stops new trades in the markets it covers. Where an order or agreement also sets terms for open positions or cash, the state’s row quotes it.
Wherever you are
- Webull Futures LLC is registered with the CFTC as a futures commission merchant and is an NFA member. Source
- Webull Futures says it is an exchange member of KalshiEX LLC and a member of North American Derivatives Exchange, Inc., self-clears customer event contract trades on Kalshi Klear and Nadex, and holds them in Cleared Swaps Customer Accounts. Source
- Webull says event contract accounts are not protected by SIPC. Source
Courts
Where the courts stand on Webull.
Whether federal commodities law preempts state gambling law is unresolved. Each federal appeals court with a Webull case, and the Supreme Court dates ahead.
| Court | Ruling | Where it stands | Source |
|---|---|---|---|
| Third CircuitDE, NJ, PA | For Webull | Ruled for Kalshi: it is likely to succeed in showing that federal law preempts New Jersey's ban on its sports contracts. (Apr 6, 2026) | Opinion |
| Ninth CircuitAK, AZ, CA, HI, ID, MT, NV, OR, WA | For the states | Ruled for Nevada: sports contracts likely aren't swaps, so states can enforce. Kalshi has asked the full court to rehear the case. (Aug 28, 2026) | Opinion |
| Fourth CircuitMD, NC, SC, VA, WV | No decision yet | Heard Maryland's case May 7, 2026. No decision yet. | Docket |
| Sixth CircuitKY, MI, OH, TN | For the states | Ruled for Ohio and Tennessee: Kalshi hasn't shown its sports contracts are swaps, and even if they were, federal commodities law doesn't preempt the states' gambling laws. Kalshi asked the full court to rehear on Oct 9, 2026. (Sep 25, 2026) | Opinion |
| Tenth CircuitCO, KS, NM, OK, UT, WY | No decision yet | Refused on Sep 8, 2026 to pause Utah's win while Kalshi appeals. The appeal itself is pending. | Docket |
| Second CircuitCT, NY, VT | No decision yet | Hearing Kalshi's appeals from New York (No. 26-1835) and Connecticut (No. 26-2239) in tandem. New York's brief is due Oct 30, 2026. | Docket |
| Seventh CircuitIL, IN, WI | No decision yet | No ruling on Kalshi yet. Appeals from the CFTC's suit against Wisconsin were docketed in August 2026. | Docket |
| Eighth CircuitAR, IA, MN, MO, NE, ND, SD | No decision yet | Kalshi appealed Iowa's win on Sep 15, 2026 (No. 26-2874). No decision yet. | Docket |
Webull at the Supreme Court
Who gets to regulate sports contracts on a federally registered exchange: only the federal regulator, or the states too? The Court is being asked whether federal commodities law preempts state gambling laws, not whether anyone must stop, and not how the trades are taxed.
- No. 26-299Filed Sep 2, 2026Flaherty v. KalshiEXNew Jersey (state gaming regulators). From the Third Circuit, No. 25-1922, which ruled for Kalshi on Apr 6, 2026.Kalshi's response is due Nov 9, 2026, extended at Kalshi's request from Oct 8. Briefs backing New Jersey's side have come from Ohio, 38 other states and the District of Columbia (Oct 7), and more amicus briefs followed on Oct 8, including from the NFL, the American Gaming Association and 145 tribes.Docket
- No. 26-338Filed Sep 10, 2026Robinhood Derivatives v. DreitzerRobinhood (a broker offering Kalshi's contracts). From the Ninth Circuit, No. 25-7831, which ruled for Nevada on Aug 28, 2026.Nevada's response is due Nov 13, 2026, extended from Oct 14.Docket
- No. 26-344Filed Sep 11, 2026North American Derivatives Exchange v. NevadaCrypto.com (another exchange). From the Ninth Circuit, No. 25-7187, which ruled for Nevada on Aug 28, 2026.Nevada's response is due Nov 16, 2026, extended at Nevada's request from Oct 15.Docket
Webull case dates ahead
Why there is more than one way to file
Federal appeals courts are split over whether these contracts are gambling that a state can license or exchange products that only the CFTC regulates. A ruling on state licensing is not a tax ruling, and the IRS has issued no guidance on event contracts. Because no court or agency has settled what these contracts are, people file them more than one way. Of the people we’ve seen file, these are the three most common ways, and Realize supports each of them. The same trades can be priced under each route, side by side.
| Route | Form | What it does |
|---|---|---|
| Gambling income, section 165(d) | Schedule 1; losses on Schedule A | Winnings are reported in full. Losses can be deducted only if you itemize, at 90% of losses and capped at winnings (tax years beginning after Dec 31, 2025). |
| Standard capital gains | Form 8949 and Schedule D | Each closed contract is a sale. Gain or loss is short or long term by holding period, and net losses can offset other gains. |
| Section 1256 | Form 6781 | 60% of the net gain or loss is treated as long term and 40% as short term. Open positions are marked to market at year end, and a net loss can be carried back three years. |
How prediction market trades are taxedTrack the prediction-market lawsuits, court by court
Kalshi at the Supreme Court follows the petitions asking whether federal commodities law preempts state gambling law.
State by state3 states with a case
Every state with a Webull case.
Each state with a case, in its group as of Oct 26, 2026. Every filing behind them is in the sources below.
| State | Group | Where it stands |
|---|---|---|
| Connecticut | Case pending | In September 2026 Connecticut named Webull among nine prediction markets it ordered to stop offering sports contracts to residents. We have not seen the order itself. |
| Kentucky | Case pending | Kentucky has sued Webull Corporation alongside Kalshi, Robinhood and Coinbase. We found no order in force. |
| Maryland | Case pending | The City of Baltimore, not the state, has sued two Webull companies, and the case is stayed. We found no order against Webull in force. |
Questions4 questions
Questions people ask about Webull’s legal status.
Short answers, from the status file as of Oct 26, 2026.
Is Webull legal in my state?
As of Oct 26, 2026, Webull faces a lawsuit, order or cease-and-desist in 3 states. In the other 3 states with a case, nothing is switched off, and in every state not listed we found no order, lawsuit or cease-and-desist.
Which states have sued Webull?
As of Oct 26, 2026, officials or a city in two states have sued Webull: Kentucky and Maryland. A lawsuit alone switches nothing off; only an order in force does.
Has the Supreme Court taken a Webull case?
Not as of Oct 26, 2026. Three petitions ask it whether federal commodities law preempts state gambling law, and none has been granted. The next date on the docket is Nov 9, 2026: Kalshi's response to New Jersey's petition is due.
How current is this page?
We check Webull’s cases against court dockets and filings, and the last check was Oct 26, 2026. Changes since Oct 26, 2026 are listed newest first, each with the filing it comes from, so you can read the docket yourself.
Sources21 documents
Where each status comes from.
Primary documents first, each with the date we last read it. Where we keep a copy of a filing, it is linked beside the original.
- Complaint, Commonwealth of Kentucky v. KalshiEX LLC et al. (Franklin Circuit Court) Franklin Circuit Court (filed by the Kentucky Attorney General) · Checked October 26, 2026Our copy
- Notice of removal, Commonwealth of Kentucky v. KalshiEX LLC, ECF 1 U.S. District Court, E.D. Ky. · Checked October 26, 2026Our copy
- Kentucky's motion to remand, Commonwealth of Kentucky v. KalshiEX LLC, ECF 29 U.S. District Court, E.D. Ky. · Checked October 26, 2026Our copy
- Complaint, City of Baltimore v. KalshiEX LLC et al. (Circuit Court for Baltimore City) Circuit Court for Baltimore City (filed by the Baltimore City Law Department) · Checked October 26, 2026Our copy
- Stipulation regarding briefing schedule and responsive pleadings, City of Baltimore v. KalshiEX LLC, ECF 33 U.S. District Court, D. Md. · Checked October 26, 2026Our copy
- Order staying case, City of Baltimore v. KalshiEX LLC, ECF 34 U.S. District Court, D. Md. · Checked October 26, 2026Our copy
- Connecticut governor's office release, “Governor Lamont announces new actions against illegal prediction markets offering sports wagers in Connecticut” Connecticut Governor · Checked October 26, 2026
- NFA BASIC record, Webull Futures LLC (NFA ID 0568685) National Futures Association · Checked October 26, 2026
Show all 21 documentsShow fewer
- Webull Futures LLC, Firm Specific Disclosure Document pursuant to CFTC Rule 1.55(k), as of August 31, 2026 Webull Futures LLC · Checked October 26, 2026Our copy
- KalshiEX v. Flaherty, precedential opinion U.S. Court of Appeals for the Third Circuit · Checked October 8, 2026Our copy
- KalshiEX v. Assad, Ninth Circuit opinion U.S. Court of Appeals for the Ninth Circuit · Checked October 8, 2026Our copy
- KalshiEX v. Martin, docket U.S. Court of Appeals for the Fourth Circuit · Checked October 8, 2026
- KalshiEX v. Schuler, opinion (Ohio and Tennessee) U.S. Court of Appeals for the Sixth Circuit · Checked October 12, 2026Our copy
- KalshiEX v. Cox, docket U.S. Court of Appeals for the Tenth Circuit · Checked October 8, 2026
- KalshiEX v. Williams, docket U.S. Court of Appeals for the Second Circuit · Checked October 8, 2026
- United States v. State of Wisconsin, docket U.S. District Court for the Eastern District of Wisconsin · Checked October 22, 2026
- KalshiEX v. Bird, docket U.S. District Court for the Southern District of Iowa · Checked October 8, 2026
- Supreme Court docket, No. 26-299 Supreme Court of the United States · Checked October 12, 2026
- Supreme Court docket, No. 26-338 Supreme Court of the United States · Checked October 12, 2026
- Supreme Court docket, No. 26-344 Supreme Court of the United States · Checked October 12, 2026
- Webull, Prediction Markets page and event trading FAQs Webull · Checked October 26, 2026
Also on Realize
At tax time.
An order changes where Webull offers a market.
Price your Webull year three common ways.
Enter a Webull net result for a federal range under each common route.