Prediction-market operators cannot advertise through Google Ads to residents of Connecticut, Michigan, Nevada, New York or Ohio, as disputes over sports-related event contracts continue in state and federal courts. CDC Gaming reported that the restriction affects Kalshi and other operators.
The five-state list creates an advertising barrier even as the underlying legal questions remain unsettled. Google’s policy sets conditions for where these companies can advertise, separate from the cases over whether states can stop them from offering contracts.
Google’s certification rules
Google added a section on prediction markets to its main Google Ads policies document in the week before CDC Gaming published its report. The rules cover platforms that list, or provide customers access to, exchange-listed contracts tied to economics, sports or current events.
To advertise in an eligible location, a provider must hold the applicable local financial, commodities or gaming licences, comply with local laws and Google’s ad policies, and receive Google’s certification and approval. The company also requires advertisers to check the rules in each location they target.
Those conditions apply alongside the state exclusions: Connecticut, Michigan, Nevada, New York and Ohio. CDC Gaming reported that sports-event contracts are not available in Michigan or Nevada, a distinction from the wider advertising restriction, which covers prediction-market products.
State disputes continue
CDC Gaming said each of the five states has sued prediction-market operators in an effort to block them from operating within its jurisdiction. Connecticut’s action against Kalshi is one example of the conflict over whether sports contracts fall under federal commodities regulation or state gambling rules, a dispute also reflected in Connecticut’s challenge to Kalshi’s sports contracts.
Operators have also challenged state enforcement. Underdog sued Tennessee, its attorney general and the Tennessee Sports Wagering Council after receiving a cease-and-desist order over sports-event contracts. The company said Tennessee had warned it could face fines, civil penalties, criminal investigations and the loss of its fantasy sports operator licence if it did not comply.
In its filing, Underdog asked a federal court in Nashville to prevent Tennessee from barring the contracts. The company’s position is that the CFTC regulates its event contracts and that federal oversight exempts them from the state’s gambling laws. Underdog has sued seven states over efforts to stop its sports-event contracts: Washington, Connecticut, Massachusetts, New Mexico, Ohio, Wisconsin and Tennessee. The arguments remain claims by the company, not a resolution of the broader regulatory dispute.
The competing approaches to federal and state oversight of prediction markets have left operators facing both legal challenges and location-specific advertising limits. Google’s restrictions do not decide whether a state can regulate a contract; they determine where an eligible provider can buy ads through the platform.
Sports contracts dominate usage
Sports outcomes are also the most common category among prediction-market users, according to the S&P Global Market Intelligence Kagan Q3 2026 Consumer Insights survey reported by CDC Gaming. Of respondents who used a yes-or-no exchange in the past year, 70% traded sports-event contracts, compared with 36% who traded economic or financial outcomes and 33% who traded political outcomes.
The survey found that 10% of respondents had traded on a yes-or-no exchange over the previous year. Awareness remained limited: 42% had heard of prediction-market operators but had not used them, while 44% said they had never heard of prediction markets.
Legal questions remain open
BetMGM CEO Adam Greenblatt told analysts he expects the Supreme Court to rule against prediction markets and hopes the justices will clarify the issue during the 2026–2027 session. According to CDC Gaming, the court had not decided whether to hear the case, and its current term runs through June 2027.
The CFTC has also proposed rulemaking concerning casino-style products on prediction markets, but that effort does not settle the live state cases. For operators, the immediate position is clearer: Google’s five named state exclusions remain in place while courts and regulators continue to contest who can oversee sports-event contracts.
The post Prediction Markets Face Google Ads Limits in Five States appeared first on ReadWrite.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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