Polymarket processed roughly $7 billion in trading volume in February 2026, and the answer to "where is it legal?" is more complicated than it has ever been, because there are now two Polymarkets. The international platform at polymarket.com is crypto-native, settles in USDC on Polygon, and restricts a long and growing list of countries. Polymarket US is a separate, CFTC-regulated exchange that began onboarding Americans in December 2025 — the first time since 2022 that US residents could legally trade on Polymarket at all.
The US comeback closed a strange gap. Polymarket is arguably the most liquid, most accurate prediction market in the world, with Brier scores around 0.09 and open interest near $400 million, yet for almost four years the country most obsessed with its election odds and Fed rate calls was shut out. Kalshi, a CFTC-regulated exchange live in 40+ states, filled that gap and pulled in roughly $9.8 billion in the same February 2026 window. Now the two compete head to head inside the US.
This article breaks down exactly where each version of Polymarket is legal, which countries the global site restricts, how the US relaunch happened, and what US traders should know before signing up.
Is Polymarket Legal in the United States Right Now
Yes — through Polymarket US, not through the global site. Polymarket's route back ran through three steps in 2025: the $112 million acquisition of QCEX, an exchange already registered with the CFTC, in July; a CFTC no-action letter in September; and an Amended Order of Designation in November that lets Polymarket operate as an intermediated exchange under the full set of federal rules for US exchanges. The Polymarket US app launched in early December 2025, inviting users from its waitlist first and opening with sports markets before adding more categories.
Signing up works like opening any regulated financial account: expect to provide a government ID, a Social Security number and proof of US residence. Availability still varies by state, because the state-level fight that Kalshi faces applies to Polymarket US as well.
The international polymarket.com platform remains off-limits to US persons. That restriction traces back to Polymarket's January 2022 settlement with the Commodity Futures Trading Commission, which carried a $1.4 million penalty for offering unregistered event contracts. Polymarket's own documentation lists the United States as close-only on the global site — existing positions can be closed, new ones can't be opened — and the platform enforces it with IP geoblocking, KYC checks and VPN detection that flags mismatched location signals.
For how this fits into the broader regulatory picture, see our guide on whether prediction markets are legal in the US and the state-by-state map at prediction markets legal states.
Where Polymarket Is Actually Legal
Outside the United States, the international Polymarket doesn't hold country-by-country licenses. It is structured as a non-custodial exchange settled in USDC on Polygon, and instead of licensing market by market, it geoblocks the jurisdictions where regulators object. That list has grown quickly: since late 2024, gambling regulators in a growing number of countries have moved against the platform, and Polymarket's own geoblocking documentation now covers dozens of jurisdictions in three tiers.
Fully blocked. Iran, Syria, Cuba and North Korea, plus the occupied Crimea, Donetsk and Luhansk regions of Ukraine. No new orders, and existing positions can't be closed either.
Close-only. Existing positions can be closed, but no new ones can be opened. This tier includes the United States, the United Kingdom, France, Germany, Italy, Belgium, Poland, Slovakia, Australia, New Zealand, Brazil, Singapore, Taiwan, Thailand and Russia, among others, plus the Canadian provinces of Ontario, Quebec, British Columbia and Alberta.
Restricted on the website only. Ireland, Japan, the Netherlands, South Korea and Malta (sports markets only), where the polymarket.com front end is blocked but API access is not.
Everywhere else, the global platform is generally accessible once you complete KYC. The list changes as local regulators act, so check Polymarket's current geoblocking page before depositing.
| Region | Status | Notes |
|---|---|---|
| United States | Polymarket US only | Global site close-only; CFTC-regulated US app since December 2025 |
| United Kingdom | Close-only | Existing positions can be closed, no new trades |
| European Union | Mixed | France, Germany, Italy, Belgium, Poland and Slovakia close-only; Ireland and the Netherlands restricted on the website |
| Canada | Mixed | Ontario, Quebec, British Columbia and Alberta close-only |
| Australia | Close-only | Existing positions can be closed, no new trades |
| Sanctioned countries | Blocked | Iran, Syria, Cuba, North Korea |
Why the US Ban Existed and How It Ended
The CFTC's core argument in 2022 was straightforward: Polymarket's event contracts functioned as unregistered swaps, and the platform never sought a Designated Contract Market (DCM) license before offering them to Americans. Kalshi took the opposite path — it built its entire business as a CFTC-regulated DCM from day one, which is exactly why it could operate legally across most of the US while Polymarket could not.
The gap was never about product quality. It was about licensing. Polymarket's peer-to-peer, crypto-settled model was built for speed and global reach, not US regulatory compliance, and retrofitting that structure would have taken years. Buying QCEX for $112 million was the shortcut, because an existing license is faster than building one from scratch. Instead of converting the global platform, Polymarket stood up a separate US exchange on top of that license, which is why the two versions now run side by side.
If you want the mechanics of how Polymarket differs from Kalshi on fees, settlement, and regulatory status, our Polymarket vs Kalshi comparison breaks down every category head-to-head.
How Polymarket US Differs From the Global Platform
Polymarket US is not the crypto-native Polymarket that US traders remember from 2024. It runs as an intermediated exchange under the CFTC's full rulebook for US exchanges, with the market surveillance, supervision, clearing and regulatory reporting that come with it, and every user goes through identity verification before trading. The launch catalog was built around sports, with more categories added afterward, so the US market list still doesn't mirror everything the global site offers. ICE, the parent company of the New York Stock Exchange, has committed up to $2 billion to Polymarket, a bet that only makes sense with US access as part of the plan.
The global, wallet-based version stays international. If you're comparing the two, our Polymarket review covers the global platform's fee structure and mechanics in detail.
Industry and Regulatory Response
CFTC Chairman Selig has publicly supported federal preemption of state-level prediction market restrictions, which would let platforms like Polymarket US and Kalshi operate nationally under one federal framework instead of fighting state-by-state battles. That stance matters because state regulators haven't been unified. Tennessee ruled in favor of Kalshi's right to operate; Nevada, Massachusetts, Maryland, and Ohio ruled against it, treating event contracts as unlicensed gambling products under state law.
Arizona escalated further, filing criminal charges against Kalshi on March 18, 2026 — a move that signals states aren't waiting for federal clarity before acting. Congress has entered the fight too. The Schiff-Curtis "Prediction Markets Are Gambling Act," introduced March 23, 2026, would reclassify event contracts as gambling products subject to state licensing, which would undercut the CFTC's exclusive jurisdiction claim and could push Polymarket US, Kalshi and every other US prediction market into state-by-state licensing. Eleven states introduced their own prediction market legislation in 2026, and none of it has landed in the same place.
For traders following how this affects platform integrity and market rules more broadly, see our coverage of prediction market insider trading regulation.
What This Means for US Traders Right Now
If you're in the US, the legal way to trade on Polymarket is the Polymarket US app, subject to its availability in your state. Using a VPN to reach the global polymarket.com site still violates its terms of service — accounts get frozen, and funds can get stuck in a compliance review with no guaranteed resolution timeline. With a regulated US version available, that risk buys you nothing except access to markets the US exchange doesn't list.
Kalshi remains the main alternative, with similar sports and political event contracts under full CFTC regulation in 40-plus states. Robinhood's prediction hub runs on Kalshi's infrastructure too, so if you already have a brokerage account there, you have legal access without opening a new platform. Our best prediction market apps guide ranks every legally accessible option for US traders, and apps like Polymarket covers alternatives if you specifically want Polymarket's market selection and pricing style.
One more thing worth knowing before you trade anywhere: profits are taxable regardless of which platform you use or whether it's technically legal in your state. Kalshi issues a 1099-MISC; the global Polymarket issues nothing, which doesn't mean the income is exempt. The IRS has issued zero formal guidance on how to classify prediction market winnings, and our prediction market tax guide walks through the three competing treatments — ordinary income, gambling, and the more aggressive Section 1256 approach — plus the 90% gambling loss cap starting tax year 2026 under OBBBA.
Timeline: Polymarket's Legal Status
| Date | Event |
|---|---|
| 2020 | Polymarket launches on Polygon |
| January 2022 | CFTC settlement bars US persons, $1.4M fine |
| 2024 | Election cycle drives massive volume, VPN workarounds widespread |
| July 2025 | Polymarket acquires QCEX, a CFTC-registered exchange, for $112M |
| October 2025 | ICE commits up to $2B to Polymarket |
| November 2025 | CFTC Amended Order of Designation clears an intermediated US exchange |
| December 2025 | Polymarket US app launches for waitlisted users |
| March 23, 2026 | Schiff-Curtis "Prediction Markets Are Gambling Act" introduced |
| March 30, 2026 | Global Polymarket expands taker fee tiers to 0.75-1.80% |
What Happens Next
With Polymarket US live, the open questions have shifted from federal approval to state access. Tennessee sided with Kalshi and four other states ruled against it, so expect appeals and possibly a circuit split that pushes federal preemption toward the Supreme Court or forces Congress to act. Whatever the courts decide for Kalshi will matter just as much for Polymarket US, because both now operate under the same federal framework.
Congressional movement on the Schiff-Curtis bill is the other variable. If it advances, it reclassifies event contracts as gambling products under state jurisdiction, which would turn today's federal licenses into a state-by-state patchwork for every US prediction market. On the international side, expect Polymarket's geoblocking list to keep changing as more national gambling regulators decide how to treat the platform.
Frequently Asked Questions
Is Polymarket legal in the US in 2026?
Yes, through Polymarket US, a separate CFTC-regulated exchange that launched in December 2025 after Polymarket acquired QCEX. The global polymarket.com site remains closed to new trades from the US. See our full breakdown of US prediction market legality for the broader regulatory context.
Can I use a VPN to access the global Polymarket from the US?
You can attempt it, but it violates Polymarket's terms of service and risks account freezes with no guaranteed path to recovering funds. Now that Polymarket US exists, the legal route for Americans is the US app.
What countries can legally use Polymarket?
Most countries that aren't on Polymarket's geoblocking list. The global site is fully blocked in sanctioned countries such as Iran, Syria, Cuba and North Korea, and close-only in a long list that includes the US, the UK, France, Germany, Italy, Australia, Singapore and four Canadian provinces. Check the platform's current list before depositing, since it changes as local regulators act.
How is Polymarket US different from the global Polymarket?
Polymarket US operates under a CFTC license as an intermediated exchange, requires identity verification with a Social Security number, and launched with sports markets. The global platform is crypto-native, settles in USDC on Polygon, and doesn't accept new trades from the US.
Is there a legal alternative to Polymarket for US traders?
Kalshi is the main alternative, operating as a CFTC-regulated exchange in 40-plus states with similar sports and political contracts. Robinhood's prediction hub also runs on Kalshi's infrastructure. Compare both directly in our Polymarket vs Kalshi guide.
Does the CFTC settlement mean Polymarket is untrustworthy?
No — the 2022 settlement was about unregistered licensing in the US, not platform integrity or solvency, and Polymarket now holds a CFTC license for its US exchange. Its Brier scores around 0.09 indicate strong market accuracy, and our Polymarket legitimacy review covers the evidence in detail.
Do I owe taxes on Polymarket winnings if it's not legal in my state?
Yes. Tax obligations are separate from state-level legality, and the IRS expects reported income regardless of which platform generated it or whether that platform operated legally in your jurisdiction. Read our prediction market tax guide for how to report it correctly.
How is Kalshi different from Polymarket legally?
Kalshi built its business as a CFTC-regulated Designated Contract Market from the start. Polymarket operated without a US license, settled with the CFTC in 2022, and returned to the US only after buying QCEX. Both US exchanges now operate under CFTC oversight and face the same state-level challenges.
