Prediction market platforms are rapidly gaining traction as users look for alternatives to traditional betting, surveys, and financial transactions. In response, new regulations are emerging regularly, especially in the United States. Among the most prominent platforms in this evolving landscape are Kalshi and Polymarket, both of which facilitate trading on actual events across politics, sports, the economy, and cryptocurrency. Despite their different approaches and offerings, both platforms are under the oversight of the same federal regulator, prompting ongoing questions about the legal status of their operations within the U.S.
The concise answer is affirmative; both Kalshi and Polymarket operate legally in the United States with federal approval.
### Is Polymarket Legal in the U.S.?
Yes, Polymarket is legal in the United States. The platform re-entered the U.S. market relatively recently. In 2022, Polymarket faced a significant setback when it was fined by the Commodity Futures Trading Commission (CFTC) for regulatory violations, leading to a temporary halt of services in the U.S. However, in 2025, the CFTC issued an amended statement allowing Polymarket to resume operations. Now, users in eligible states can access the platform legally.
To register on Polymarket, users must be 18 years or older. The platform is available through apps for iOS and Android, as well as via web browsers. In light of regulatory scrutiny regarding user location and compliance, Polymarket has implemented more rigorous identity verification processes.
### Is Kalshi Legal in the U.S.?
Kalshi is also legal in the United States and is recognized as a federally regulated prediction market trading platform. It is officially designated as a Designated Contract Market (DCM), similarly overseen by the CFTC.
Unlike traditional sports betting, Kalshi operates legally in most states, including ones where sports betting is not yet available. This distinction is crucial because prediction markets do not fall under traditional gambling laws in some cases. Consequently, Kalshi can legally facilitate trading on events in states that do not permit conventional sportsbooks. Ongoing litigation in states like Massachusetts and Nevada centers around the classification of these contracts and their relation to state gambling laws, as several states claim prediction market operators pose a competitive threat to their sports betting revenues.
### 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 |
| 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 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
Kalshi conducts its business in over 40 U.S. states, making it one of the most accessible prediction market platforms. Although it operates nationally under CFTC authorization, some states have contested this, imposing restrictions based on their interpretation of the law.
Kalshi is viewed as a financial instrument rather than a form of gambling, which allows it to function even in states where traditional betting is prohibited. Upon legal challenges, Michigan has temporarily suspended Kalshi operations pending court rulings, while states like Massachusetts and Rhode Island have raised concerns about prediction markets competing with existing sports betting frameworks.
**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 contrast to Kalshi, Polymarket has not released a clear state-by-state breakdown of supported or restricted areas, reflecting its current beta testing and invite-only rollout. Therefore, while users aren't explicitly barred based on their state, they remain in a waiting phase as Polymarket prepares for a broader launch.
Active legal actions affecting Polymarket include:
– **Tennessee:** The Tennessee Sports Wagering Council issued cease-and-desist orders, though a Federal Judge has temporarily withheld enforcement.
– **Nevada:** The Nevada Gaming Control Board is pursuing legal action to halt Polymarket's sports event contracts.
– **Massachusetts:** This state has positioned itself strongly against sports betting and has initiated crackdowns on those markets.
– **New Mexico:** Polymarket faces regulatory scrutiny concerning the classification of prediction markets under gambling laws.
As Polymarket transitions from beta testing to general availability, the legal status could evolve further in various states.
### FAQs about Kalshi & Polymarket in the U.S.
**Can Americans use Kalshi or Polymarket?**
Kalshi allows U.S. citizens aged 18 and older to trade in more than 40 states. The U.S. version of Polymarket’s app launched recently, but access is currently limited to invitees due to its beta status.
**Which U.S. states restrict Polymarket?**
A comprehensive list of state-specific restrictions on Polymarket is still being developed as the platform is gradually expanding its user base.
**Can I use Polymarket in the U.S.?**
Yes, though access is invitation-only for now. After receiving federal approval in late 2025, Polymarket is gradually extending access beyond its current beta users.
**Who regulates prediction markets in the U.S.?**
The CFTC governs prediction markets in the U.S. through federal law, allowing platforms like Polymarket and Kalshi to offer event contracts legally.
**Can I trade on Kalshi in the U.S.?**
Yes, Kalshi operates legally in the U.S. as a federally regulated financial exchange offering event contracts across all states.
