Prediction market platforms have gained considerable traction as users look for alternatives to traditional betting methods in sports, surveys, and financial markets. As this trend grows, new rules and regulations are being established regularly, both worldwide and within the United States.
Among the leading prediction market platforms are Kalshi and Polymarket, both allowing users to trade on real-world events spanning politics, sports, the economy, and cryptocurrency. Although they operate under the same federal regulatory framework, key differences exist in their operational methods and offerings. A critical question often arises: Are their products legal to operate in the U.S.?
The answer is yes. Both Polymarket and Kalshi are legally permitted to operate in the United States with federal approval.
**Is Polymarket legal in the U.S.?**
Indeed, Polymarket is legal in the United States, having recently re-entered the market. The platform received a notice from the Commodity Futures Trading Commission (CFTC) in 2022 due to regulatory violations, prompting it to cease operations in the U.S. that same year. However, by 2025, an amended statement from the CFTC allowed Polymarket to resume operations. As a result, residents can now access the platform legally in eligible states. Users must be at least 18 years old to register. Polymarket is available on both iOS and Android devices, as well as through traditional web browsers. This re-entry corresponds with enhanced user identity verification measures, given the growing regulatory focus on issues like user location and compliance.
**Is Kalshi legal in the U.S.?**
Kalshi is also legal to operate in the United States, functioning as a federally regulated prediction markets trading platform. Registered as a Designated Contract Market (DCM), Kalshi is similarly overseen by the CFTC. It has the advantage of being legal in most states, including those where traditional sports betting remains unavailable. This distinction stems from Kalshi not being classified under traditional betting laws, as its contracts are considered financial instruments, thereby allowing operations even where sports betting isn't authorized. However, several states are contesting this classification in ongoing legal disputes.
**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 |
**Kalshi's State-by-State Legality**
Kalshi is operational in more than 40 states across the U.S., making it one of the most widely accessible prediction markets available. While it operates nationally under CFTC authorization, some states have opposed its use and imposed restrictions. Its classification as a financial instrument allows Kalshi to conduct business even where traditional sports betting isn't permitted. Ongoing litigation in Massachusetts and Nevada contests the appropriateness of Kalshi’s contracts concerning state gambling laws. Additionally, states like Michigan and Rhode Island have raised concerns, with active lawsuits against Kalshi, claiming they threaten conventional sports betting revenue.
**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.
**Polymarket's State-by-State Legality**
Polymarket does not have a clear breakdown of supported and restricted states, reflecting its limited beta rollout. The platform currently operates on an invite-only basis, meaning users across the U.S. are not technically blocked; they await broader availability.
**Active Legal Actions Against Polymarket:**
– **Tennessee:** The Tennessee Sports Wagering Council issued cease-and-desist orders, temporarily stayed by a federal judge.
– **Nevada:** The Nevada Gaming Control Board has filed suit against Polymarket, seeking to halt its offerings of sports event contracts.
– **Massachusetts:** The state has actively pursued restrictions against both Polymarket and Kalshi.
– **New Mexico:** Authorities raised concerns regarding how prediction markets should be classified under gambling regulations.
As Polymarket transitions away from beta testing, its operational status in various states may evolve.
**FAQs About Kalshi & Polymarket in the U.S.**
– **Can Americans use Kalshi or Polymarket?** Yes, Kalshi welcomes U.S. citizens 18 and older in over 40 states. Polymarket offers limited access through an invite-only beta.
– **Which U.S. states restrict Polymarket?** Currently, a comprehensive list of restrictions is unavailable since Polymarket is still in a limited rollout phase.
– **Can I use Polymarket in the U.S.?** Yes, although access remains by invitation as Polymarket expands its services nationwide.
– **Who regulates prediction markets in the U.S.?** The CFTC governs prediction markets, allowing platforms like Polymarket and Kalshi to operate under federal law, even in states where traditional sports betting is prohibited.
– **Can I trade on Kalshi in the USA?** Yes, Kalshi is a legally recognized trading platform across the U.S., permitted to offer event contracts under federal regulations.
