Prediction market platforms are becoming increasingly popular as users seek alternatives to traditional sports betting, surveys and financial markets. Based on this, new rules and regulatory laws are getting made almost every month both globally and in US.
Kalshi and Polymarket are recognized in the prediction markets as two main platforms. They both let users to trade on real-world events including politics, sports, economy and crypto. Even though, both Kalshi and Polymarket have differences of working methods and offering, the platforms operate under the same federal regulator. However, a frequently recurring question arises regarding whether or not these companies’ products are actually legal to workwithin the US.
If we are trying to tell the short answer, then it’s yes. Both platforms operate legally in the United States with federal approval.
A detailed overview of the status of prediction market regulation in 2026 can be found below.
Is Polymarket legal in the US?
The short answer is – yes! Polymarket is legal in the US. Despite that, the platform only recently re-entered the US market.
In 2022 platform received a notice from the Commodity Futures Trading Commission (CFTC), which is the federal agency responsible for overseeing U.S. derivatives markets, with a fine for regulatory violations. It ceased its services in the United States in the same year.
In 2025, the CFTC issued an amended statement that allowed Polymarket to return to the US. US residents and platform users in eligible states can now legally and securely access Polymarket.
The age limit for registering on Polymarket is 18 years or older. It is possible to access the app for iOS and Android operating systems, as well as access the website through your computer and mobile browsers. The platform has launched more stringent identity verification systems, in light of the increased attention being paid by regulators to user location verifications, VPN usage and compliance regulations.
Is Kalshi legal in the US?
Well known prediction market platform Kalshi is legal in the US. It operates as a federally regulated prediction markets trading platform. The platform is officially registered as a Designated Contract Market (DCM). Like Polymarket, it is also regulated by the Commodity Futures Trading Commission.
Kalshi is now legal in most states throughout the country, even in some states where sports betting is not legally available yet.
That stands behind Kalshi no operating under traditional betting laws. Some of the states may legally allow prediction markets for betting on sports or other events where there is currently no legal provision for sportsbooks to be authorized to operate.
Kalshi is under the authority of the CFTC and legally subject to regulation and oversight by the CFTC, while sports betting is regulated only within their states by their respective State Government’s Gaming or Lottery commissions.
Kalshi & Polymarket: Legal status
| Category | Kalshi | Polymarket |
|---|---|---|
| Federal regulator | CFTC (Designated Contract Market) | CFTC (via QCEX acquisition, approved Sept 2025) |
| Registration type | Registered DCM | Registered exchange, intermediary structure |
| Legal precedent | Kalshi v. CFTC (2024) cleared election markets | 2022 settlement, fine, required platform restructuring |
| US accessibility | Live access in 40+ states | Invite-only waitlist, limited beta |
| Onboarding requirement | Bank account, standard KYC | Crypto wallet + KYC through approved broker |
| States with active restrictions | AZ, IL, MA, MD, MI, MT, NV, OH | TN (enforcement blocked), NV, MA, NM |
| Type of state pushback | Lawsuits, injunctions (sports contracts) | Cease-and-desist orders, lawsuits |
| Legal status | Federally legal, state disputes ongoing | Federally legal, access still restricted + state disputes ongoing |
State-by-state Kalshi legality in US
Currently, Kalshi does business in more than 40 U.S. states, making it one of the most widely available prediction market platforms in existence today. Although the CFTC has authorized Kalshi to operate nationally, some states have been opposed to it and have placed restrictions or limitations on it’s use within their borders.
The reason Kalshi can provide nationwide access is largely due to one major difference: it is not classified as a form of gambling.
Kalshi can offer trading around the of events even in states where traditional sports betting is illegal because these contracts are considered legally to be Financial Instruments and not wagers. States attempting to prohibit Kalshi are contesting that view regarding contracts associated with sports and that is what is at issue in the ongoing litigation in Massachusetts and Nevada. In New York courts have taken up legal issues concerning Kalshi’s bid to avoid having state gambling laws apply to its contracts. Rhode Island has similarly raised its grievances against prediction market operators and sued Kalshi, claiming that they pose a threat of competition to conventional sports betting revenues. The state of Michigan also temporarily halted Kalshi’s operations pending a court ruling regarding the applicability of state gambling laws to sports contracts.
Fully Supported States
Alabama, Alaska, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, DC.
Restricted or Limited States
Arizona, Massachusetts, Maryland, Michigan, Montana, New Jersey, Nevada, Ohio, Rhode Island.
State-by-state Polymarket legality in US
Unlike Kalshi, Polymarket doesn’t have any clean state-by-state breakdown of “supported” and “restricted” states.
This position actually shows where the platform stands in reality. Polymarket hasn’t yet had a large, widespread US rollout because it has a small beta and invite-only waitlist for its regulated product. It has not had a full 50-state market reach at this time. In other words, users in the US aren’t being blocked from using Polymarket on a state-by-state basis, rather they are awaiting the time that the platform fully opens itself up to the public.
Active legal actions by state:
- Tennessee: Tennessee Sports Wagering Council issued cease-and-desist orders to Polymarket but were granted a stay by a Federal Judge pending further developments in the case.
- Nevada: The Nevada Gaming Control Board filed suit to stop Polymarket from providing sports event contracts in that state.
- Massachusetts: Massachusetts has taken one of the strongest positions against sports betting and has taken steps to crack down on sports contract prediction markets; this includes a crackdown on Kalshi in that state.
- New Mexico: Polymarket has also faced regulatory challenges from New Mexico authorities regarding whether prediction markets should be classified under gambling laws.
As Polymarket transitions from beta testing to general availability on a state-by-state basis, the status of individual states will likely continue to change.
FAQs about Kalshi & Polymarket in US
Can Americans use Kalshi or Polymarket?
Kalshi allows US citizens aged 18 years or older to use the platform in more than 40 states. As of today, US citizens aged 18 years and older are able to trade in multiple categories through the newly launched US version of Polymarket’s App, although only people with an invitation have access right now due to being in an invite-only waitlist and beta state.
Which US states restrict Polymarket?
Currently, there is no exhaustive list of the specific restrictions that individual states impose on Polymarket as compared with Kalshi, because their regulated US product is still being rolled out in a limited and invite-only manner. As Polymarket continues to add users to the platform beyond its current beta test, more states are likely to formally restrict or grant permission for Polymarket to provide access to products through the Polymarket platform.
Can I use Polymarket in US?
Yes, although you will still only be able to access Polymarket by invitation. From late-2025 onward, Polymarket received federal approval to operate in the United States before spreading access to a regulated US product via a limited and invite-based waitlist and a limited beta program rather than through permission to operate throughout the entire country.
Who regulates prediction markets in US?
The CFTC governs and regulates prediction markets in the United States through federal law. Prediction markets such as Polymarket and Kalshi operate as “event contracts” and offer legally permissible predictions even where traditional sports betting cannot be provided under local or state regulations.
Can I trade on Kalshi in the USA?
Yes, you can legally use Kalshi to make trades in the United States. Kalshi is a federally regulated financial exchange, permitted to offer event contracts on all fifty states.