Prediction markets like Kalshi and Polymarket currently do not offer contracts for betting on the Kentucky Derby or other horse racing events. This is primarily due to legal complexities surrounding the Interstate Horseracing Act (IHA), which grants intellectual property and wagering rights to entities like Churchill Downs Inc. The IHA requires approval from the content producer for any wagering activity on horse races, creating a legal barrier for prediction markets. Additionally, the National Thoroughbred Racing Association (NTRA) has warned the Commodity Futures Trading Commission (CFTC) that horse racing contracts on prediction markets may violate federal laws and public interest standards.

While prediction markets remain cautious, traditional sportsbooks such as FanDuel Racing continue to offer betting on the Kentucky Derby, with wagering opening on May 1, 2026. For prediction markets to enter horse racing betting, they would need explicit consent from key stakeholders like the host tracks. Until then, horse racing fans must rely on established betting sites rather than emerging prediction market platforms.