The popularity of prediction market platforms is rising as users look for alternatives to traditional sports betting, surveys, and financial markets. As this trend grows, new rules and regulations are being introduced regularly across the globe and in the U.S. Kalshi and Polymarket have emerged as two leading platforms in the prediction market space, allowing users to trade on a variety of real-world events including politics, sports, the economy, and cryptocurrency. Although they operate differently, both platforms are regulated by the same federal authority. A common question that arises is whether these platforms and their offerings are legally permissible in the United States.
To answer succinctly: yes, both Kalshi and Polymarket are legally operating in the U.S. with federal approval. Here's a closer look at their legal standings as of 2026.
**Is Polymarket Legal in the U.S.?**
Polymarket is indeed legal in the U.S., having recently re-entered the market. In 2022, the platform received a notice from the Commodity Futures Trading Commission (CFTC) regarding regulatory violations, which led to a suspension of its services in the U.S. that same year. However, by 2025, the CFTC issued an amended statement permitting Polymarket to return, allowing U.S. residents in eligible states to access the platform legally. Users must be at least 18 years old to register. Polymarket is available on iOS and Android, and also accessible via web browsers. In response to regulatory scrutiny regarding user verification, Polymarket has implemented stricter identity verification measures.
**Is Kalshi Legal in the U.S.?**
Kalshi is also recognized as a legal prediction market platform in the U.S. It operates under federal regulation as a designated contract market (DCM) and is likewise supervised by the CFTC. Kalshi is accessible in most U.S. states, even in areas where sports betting has not been legalized. The platform does not operate under traditional gambling laws, allowing it to function in states where conventional sports betting is prohibited. This difference is significant because Kalshi's contracts are classified as financial instruments rather than wagers, which is central to ongoing litigation in various states questioning this classification. Ongoing legal disputes in states like Massachusetts and Nevada challenge Kalshi's operations, while Michigan has temporarily paused Kalshi's activities pending legal clarification on applicable state gambling laws.
**Legal Status Summary**
| 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 |
| Legal status | Federally legal, state disputes ongoing | Federally legal, access still restricted + state disputes ongoing |
**Kalshi State Legality**
Kalshi operates in over 40 states, making it one of the most widely available prediction platforms. Its ability to function nationally is primarily due to its classification, allowing it to offer trades on events in states where traditional sports betting is illegal. Current litigation is challenging this stance, particularly regarding sports-related contracts in Massachusetts and Nevada, while New York has been examining the applicability of state gambling laws.
**Polymarket State Legality**
Unlike Kalshi, Polymarket does not maintain a clear list of states categorized as supported or restricted. This reflects the platform's current operating status; it has not yet undergone a full rollout across the U.S. Instead, it is in a limited beta phase with a waiting list for users, as access has not been widely released yet. Legal actions have been initiated by states such as Tennessee, Nevada, Massachusetts, and New Mexico, each seeking to assert their jurisdictions over Polymarket's operations. The transition of Polymarket from beta to full availability will likely continue evolving, affecting its legal landscape across various states.
**FAQs about Kalshi & Polymarket in the U.S.**
1. **Can Americans use Kalshi or Polymarket?**
Yes, Kalshi is available to U.S. citizens aged 18 and older in over 40 states. Polymarket is also accessible to users aged 18 and older, but only by invitation at this time due to its beta status.
2. **Which U.S. states restrict Polymarket?**
There is currently no comprehensive list specifying the restrictions on Polymarket, as the platform continues its restricted, invite-only rollout.
3. **Can I use Polymarket in the U.S.?**
Yes, access is possible, although currently limited to invitations. Federal approval obtained by Polymarket allows for operation in anticipation of expanding its product access through beta testing.
4. **Who regulates prediction markets in the U.S.?**
The CFTC regulates prediction markets through federal law, allowing platforms like Polymarket and Kalshi to offer event contracts even in regions where traditional sports betting is not permitted.
5. **Can I trade on Kalshi in the USA?**
Yes, U.S. citizens can legally trade on Kalshi; it is authorized to operate as a federally regulated financial exchange in all fifty states.
