Prediction market platforms are gaining traction as individuals look for alternatives to traditional sports betting, surveys, and financial markets. As a result, new regulations are being introduced nearly every month, both globally and within the United States. Kalshi and Polymarket have emerged as two prominent platforms in this space, allowing users to trade on various real-world events including politics, sports, the economy, and cryptocurrencies. While they share the same federal regulator, their operational methods and offerings differ, raising a common question: are these platforms legal in the U.S.?
The short answer is yes. Both Polymarket and Kalshi are legal in the United States, having received federal approval to operate.
### Is Polymarket Legal in the U.S.?
Polymarket is indeed legal within the U.S.; however, it only recently resumed operations after resolving regulatory issues. In 2022, the Commodity Futures Trading Commission (CFTC) issued a notice to Polymarket for regulatory violations, which prompted the platform to cease services in the U.S. Later, in 2025, the CFTC amended its stance, allowing Polymarket to return. U.S. residents in eligible states can now access Polymarket legally and securely.
To register on Polymarket, users must be at least 18 years old. The platform is accessible via iOS and Android apps, as well as through web browsers on computers and mobile devices. In response to increased regulatory scrutiny on user location and compliance, 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 as a federally regulated entity and is officially registered as a Designated Contract Market (DCM), similarly overseen by the CFTC. Kalshi is available in most states, even those where traditional sports betting is not legally allowed, as it does not fall under conventional betting laws. This allows Kalshi to operate nationwide, classifying its contracts as financial instruments rather than wagers.
While Kalshi enjoys broad access thanks to this distinction, it faces challenges in some states where authorities contest its classification. Current lawsuits and disputes are ongoing in states like Massachusetts and Nevada, where officials assert that contractual agreements related to sports should adhere to state gambling laws. Kalshi's legal challenges also extend to Rhode Island, where state officials have claimed its presence threatens traditional sports betting revenue.
### State-by-State Legality Overview
**Kalshi**: Operating in over 40 U.S. states, Kalshi successfully navigates the market landscape. However, some jurisdictions have imposed restrictions due to ongoing disputes. These restrictions are primarily in states like Arizona, Massachusetts, and Michigan where the legality of prediction markets is being questioned.
**Polymarket**: Unlike Kalshi, Polymarket does not have a detailed state-by-state breakdown of its legal status, largely due to its limited beta rollout. Users are currently on an invite-only waitlist, which restricts broader access across the nation.
Polymarket faces regulatory hurdles in states like Tennessee, Nevada, and Massachusetts, where legal actions are aimed at halting its operations. As the site transitions from beta testing to general availability, the legal standings may continue to fluctuate.
### FAQs about Kalshi & Polymarket in the U.S.
**Can Americans use Kalshi or Polymarket?**
Yes, Kalshi is accessible to U.S. citizens over 18 in more than 40 states. Polymarket also permits ages 18 and older to trade, but access is currently limited to users on an invitation list due to its beta state.
**Which U.S. states restrict Polymarket?**
There isn't a specific list of state restrictions for Polymarket at this moment because it is still in a controlled beta phase. As the platform expands its user base, more states may formally challenge or approve its operations.
**Can I use Polymarket in the U.S.?**
Yes, but access is invitation-only. After receiving federal approval in late 2025, Polymarket has been gradually rolling out its regulated product.
**Who regulates prediction markets in the U.S.?**
The CFTC oversees prediction markets in the United States, allowing platforms like Polymarket and Kalshi to operate legally as “event contracts” despite local betting restrictions.
**Can I trade on Kalshi in the U.S.?**
Yes, Kalshi is legally permitted to operate as a federally regulated financial exchange, offering event contracts nationwide.
