Prediction market platforms are gaining traction as users look for alternatives to conventional sports betting, surveys, and financial markets. This trend has prompted the introduction of new regulations almost monthly, both globally and within the United States. Kalshi and Polymarket have emerged as leading platforms in the prediction markets, allowing users to trade on various real-world events, including politics, sports, economic developments, and cryptocurrency. While the two platforms have distinct operational methods and offerings, they both fall under the jurisdiction of the same federal regulator. A common question that arises is whether these companies' products are legally viable in the U.S. The answer is affirmative—both platforms are operating legally in the United States with federal approval.
**Is Polymarket Legal in the U.S.?**
Yes, Polymarket is legal in the United States, having recently re-entered the market. In 2022, the platform received a notification from the Commodity Futures Trading Commission (CFTC), the federal agency overseeing U.S. derivatives markets, regarding regulatory violations, resulting in a temporary halt of its services in the country. However, in 2025, the CFTC issued an amended statement permitting Polymarket to return, allowing users in eligible states to access the platform legally and securely. Users must be at least 18 years old to register, and access is available on iOS and Android apps, with a web interface for computers and mobile browsers. Polymarket has implemented stricter identity verification processes due to heightened regulatory scrutiny regarding user location, VPN usage, and compliance.
**Is Kalshi Legal in the U.S.?**
Kalshi is also a legal entity in the U.S. and operates as a federally regulated prediction market trading platform, officially registered as a Designated Contract Market (DCM). Similar to Polymarket, it is regulated by the CFTC. Kalshi has gained legal standing in most states, even in those where sports betting remains prohibited. This is due to Kalshi’s classification outside traditional betting laws; therefore, it can legally facilitate trades on events where sportsbooks are not authorized. The CFTC oversees Kalshi's regulations, unlike state sports betting, which is managed by respective state gaming or lottery commissions.
**Legal Status Summary:**
| Category | Kalshi | Polymarket |
|——————–|———————————–|———————————–|
| Federal Regulator | CFTC (Designated Contract Market) | CFTC (via QCEX acquisition, 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 |
| U.S. 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 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 operates in over 40 U.S. states, making it one of the more widely available prediction market platforms. While the CFTC has authorized Kalshi for national operations, certain states have imposed restrictions. Kalshi's ability to function across the nation is primarily attributed to its classification as a financial instrument rather than a form of gambling. This allows it to facilitate trading on events even in states where traditional sports betting is illegal. Current legal disputes in states like Massachusetts and Nevada challenge this classification, while Michigan has temporarily halted Kalshi's operations pending judicial review.
**Fully Supported States for Kalshi:**
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, D.C.
**Restricted or Limited States for Kalshi:**
Arizona, Massachusetts, Maryland, Michigan, Montana, New Jersey, Nevada, Ohio, Rhode Island.
**Polymarket's State-by-State Legality**
Polymarket has not yet achieved a comprehensive state-by-state breakdown like Kalshi. Its limited beta and invite-only rollout means that while it hasn’t been broadly introduced, users are not explicitly restricted by states but are awaiting wider access to the platform.
**Active Legal Actions Against Polymarket:**
In Tennessee, the Sports Wagering Council has issued cease-and-desist orders against Polymarket, currently paused by a federal judge. In Nevada, the Gaming Control Board filed a lawsuit to prevent the platform from offering sports event contracts. Massachusetts has implemented strict measures against prediction markets, affecting both Kalshi and Polymarket. New Mexico has also raised regulatory questions regarding classification under gambling laws.
As Polymarket transitions to wider availability, individual state statuses are likely to evolve.
**FAQs about Kalshi & Polymarket in the U.S.**
1. **Can Americans use Kalshi or Polymarket?**
Kalshi is open to U.S. citizens aged 18 and over, with access in more than 40 states. Currently, Polymarket allows U.S. users aged 18 and older to trade, but participation is limited to those invited during its beta phase.
2. **Which U.S. states restrict Polymarket?**
An exhaustive list of restrictions is not available due to the platform's limited rollout in an invite-only format, but more states may set formal restrictions as Polymarket expands its user base.
3. **Can I use Polymarket in the U.S.?**
Yes, but access is still limited to invitations. Following federal approval in late 2025, Polymarket is gradually rolling out its regulated U.S. product via an invite-only system and is not fully operational nationwide yet.
4. **Who regulates prediction markets in the U.S.?**
The CFTC regulates prediction markets like Polymarket and Kalshi under federal law, permitting event contracts even where traditional sports betting is not available locally.
5. **Can I trade on Kalshi in the U.S.?**
Yes, Kalshi is federally regulated and permitted to operate event contracts throughout all fifty states.
