Prediction market platforms are gaining traction as users seek alternatives to the traditional sports betting and financial markets. This surge in interest has prompted new regulatory rules to emerge regularly, both globally and within the United States. Among the leading platforms operating in this space are Kalshi and Polymarket, which allow users to trade on real-world events covering politics, sports, the economy, and cryptocurrency. Although they employ different methods and offerings, both platforms are overseen by the same federal regulator. A common question that arises is whether these platforms operate legally in the U.S.
The straightforward answer is yes. Both Kalshi and Polymarket are legal platforms in the United States, operating with federal approval.
### Is Polymarket legal in the US?
Polymarket is indeed legal in the U.S., having recently re-entered the market. In 2022, it received a notice from the Commodity Futures Trading Commission (CFTC) for regulatory violations and subsequently ceased operations in the U.S. that year. However, in 2025, the CFTC issued revised guidance that allowed Polymarket to resume its services for U.S. residents in eligible states.
To use Polymarket, users must be at least 18 years old. The platform is accessible via the app for iOS and Android, or through web browsers on computers and mobile devices. In response to increased regulatory scrutiny regarding user locations and VPN use, Polymarket has implemented stricter identity verification measures.
### Is Kalshi legal in the US?
Kalshi is another prominent prediction market platform that operates legally in the U.S. It functions as a federally regulated trading platform and is registered as a Designated Contract Market (DCM), also overseen by the CFTC. Kalshi is available in most states, even in those where sports betting is not yet legalized, as it does not fall under traditional betting laws. The platform offers contracts that are classified as financial instruments, which permits it to operate even in states lacking legal sportsbooks.
Although some states have raised legal challenges against Kalshi regarding its sports contracts, the platform's legal framework remains intact. Recently, states like Massachusetts and Nevada have engaged in litigation concerning Kalshi's operations, with claims that it poses competition to traditional sports betting.
### Legal Status Overview
**Kalshi**
– Federal Regulator: CFTC (Designated Contract Market)
– Registration Type: Registered DCM
– Legal Status: Federally legal, but state disputes ongoing
– Active Restrictions: Arizona, Massachusetts, Maryland, Michigan, Montana, New Jersey, Nevada, Ohio, Rhode Island
**Polymarket**
– Federal Regulator: CFTC (via QCEX acquisition, approved September 2025)
– Registration Type: Registered exchange, intermediary structure
– Legal Status: Federally legal, with access still limited and state disputes ongoing
– Active Restrictions: Tennessee (stay granted by federal court), Nevada, Massachusetts, New Mexico
### State-by-State Legal Breakdown
Currently, Kalshi operates in over 40 states, making it one of the most accessible prediction market platforms in the U.S. It provides nationwide access under the premise that its contracts are not considered gambling. The ongoing legal battles in various states relate to how Kalshi’s sports contracts fit within existing gambling laws.
States allowing Kalshi to operate include Alabama, California, Florida, and New York, among others. Meanwhile, states that impose restrictions include Arizona, Massachusetts, and Maryland.
Polymarket’s situation differs somewhat; instead of having a clear list of supported and restricted states, it currently functions on an invite-only beta basis. The platform is preparing for broader rollout but has not yet achieved full nationwide access. Active legal actions against Polymarket include attempts by state authorities in Tennessee and Nevada to halt its operations, and Massachusetts’ crackdown on sports contract prediction markets complicates Polymarket’s rollout.
### FAQs about Kalshi & Polymarket in the US
– **Can Americans use Kalshi or Polymarket?** Yes, Kalshi is available to U.S. citizens aged 18 and older in over 40 states. Polymarket users must currently have an invitation as it is still in a limited beta phase.
– **Which U.S. states restrict Polymarket?** There is no comprehensive list available yet. Restrictions may formalize as Polymarket expands access beyond its current limited rollout.
– **Can I trade on Kalshi in the USA?** Yes, Kalshi is fully operational for legal trades in the United States, being a federally regulated financial exchange authorized to offer event contracts across all states.
