The short answer: Polymarket is federally legal in the United States as of late 2025, but availability depends on which state you live in, and the legal landscape is still actively shifting. Here’s the full picture.
The 30-second summary
- Federal status: Legal. Polymarket received CFTC approval in late 2025 after acquiring the regulated derivatives exchange QCEX.
- State-level status: Mixed. Polymarket is currently not available in AZ, IL, MA, MD, MI, MT, NJ, NV, and OH as of mid-2026.
- The international Polymarket platform (the original crypto-based version) remains geoblocked for US IP addresses. US users access a separate, US-specific platform with full KYC.
- Active litigation: Several states are actively challenging whether prediction markets fall under federal financial regulation or state gambling laws.
How Polymarket got back into the US
Polymarket’s US history has been turbulent. In 2022, the CFTC fined the company $1.4 million for operating as an unregistered derivatives exchange and required it to block US users. For roughly three years, US residents had no legal way to use the platform.
That changed in late 2025. Polymarket acquired QCEX, a CFTC-registered Designated Contract Market and clearing house, which gave the company a regulated path to operate in the US. The CFTC approved the structure under an Amended Order of Designation, allowing Polymarket to offer event contracts to US users through a fully regulated, intermediated platform.
The two platforms are now distinct products:
International Polymarket: Crypto-native, no KYC for most activity, restricted by IP address from US and other regions.
Polymarket US: CFTC-regulated, full KYC required (government ID, SSN, proof of residency, live selfie), funded through registered futures commission merchants rather than direct crypto deposits, accessible only to US residents in eligible states.
These have separate liquidity pools, separate user bases, and separate market offerings. As of mid-2026, the US platform is still rolling out access on a waitlist basis, with full public availability expected later in the year. See our how Polymarket works guide for more on the two-platform structure.
State-by-state availability
Federal CFTC approval doesn’t automatically mean every state agrees. The core legal question is whether prediction markets count as financial derivatives (under federal jurisdiction) or as gambling (under state jurisdiction). Several states have taken the second position and are actively challenging Polymarket’s right to operate within their borders.
States where Polymarket is NOT currently available
As of mid-2026, the platform is unavailable in:
Connecticut, New York, and a few other states have raised concerns but haven’t blocked access at the state level yet.
States where Polymarket is currently available
In the remaining states, including California, Texas, Florida, Pennsylvania, and most others, Polymarket operates under federal CFTC authorization. To use it, users must be 18 or older with a legal US residential address in an eligible state.
Some states require users to be 21+ for certain market types, particularly sports event contracts, due to local age requirements.
Important caveat
The state-level situation is moving. As of early 2026, at least 11 states have issued cease-and-desist orders against prediction market platforms, with active litigation in 8+ states. Court rulings have gone in different directions depending on jurisdiction, and a single appellate decision could meaningfully change which states are accessible.
Always check your state’s current status on Polymarket’s signup page before assuming you can use the platform.
Why the state battles are happening
The fight is essentially about jurisdictional authority. Federal law treats event contracts on a CFTC-registered exchange as financial derivatives — like trading futures or options. State gambling regulators argue that contracts on outcomes like sporting events are functionally the same as sports betting and should be subject to state gambling licensing requirements.
The federal position has been firm. A CFTC official stated in The Wall Street Journal that the agency would no longer remain passive while state governments undermined federal authority over these markets. The Trump administration has publicly sided with prediction markets in these disputes.
But individual states aren’t bound by federal posture if they can argue the contracts violate state law. Nevada’s lawsuit, for example, frames sports event contracts as unlicensed sports betting, which would require Polymarket to obtain a state gaming license — something it doesn’t have and likely can’t obtain without operating as a casino.
The CFTC has counter-sued in several cases (notably against Arizona, Connecticut, and Illinois), arguing federal preemption. As of mid-2026, courts have reached conflicting conclusions, and the question is likely headed to higher courts before being settled.
What about the Maduro insider-trading scandal?
You may have seen news about a trader who staked roughly $34,000 on Polymarket positions related to the capture of Venezuelan President Nicolás Maduro just hours before a US military operation succeeded — walking away with over $400,000 in profit. The timing was suspicious enough to spark accusations of insider trading and prompted Rep. Ritchie Torres to introduce the Public Integrity in Financial Prediction Markets Act of 2026, aimed at preventing federal employees and elected officials from trading on outcomes they might influence.
This legislation, if passed, wouldn’t make Polymarket itself illegal — it would prohibit specific categories of users (federal employees, elected officials) from trading on certain politically sensitive markets. As of May 2026, the bill is still in committee.
What about VPNs?
Some users in restricted regions consider using a VPN to access the international platform. This is a bad idea for several reasons:
It violates Polymarket’s terms of service. The platform has explicitly intensified its geoblocking and wallet analysis. If detected, your account can be frozen and funds withheld.
KYC catches it eventually. Although the international platform doesn’t require KYC for small activity, larger withdrawals tend to trigger review. If your documents show a restricted country, the violation is verified and withdrawals are denied.
Blockchain transparency is permanent. All Polymarket transactions are on-chain. When you fund the wallet with a KYC-verified exchange, the link between your identity and your trading activity is visible to anyone who looks. Wins drawing scrutiny is a real risk.
Account closure means lost funds. If Polymarket determines you deliberately violated geographic restrictions, it can lock you out entirely. The process to recover funds is slow and frustrating, with no guarantee of success.
For US users in eligible states, use the official US platform. For users in restricted states, the legal alternatives are Kalshi (CFTC-regulated, available in all 50 states) and Robinhood Event Contracts.
Common questions
Can I use Polymarket if I’m a US citizen living abroad?
The platform restricts based on IP address and KYC documents, not citizenship. If you’re physically located in a non-restricted country and have appropriate ID, you can typically use the international platform. US citizens living in restricted jurisdictions (or accessing from US IPs) are blocked.
What’s the difference between Polymarket US and Polymarket international?
Polymarket US is CFTC-regulated, requires full KYC, funds through traditional financial intermediaries, and is available only to US residents in eligible states. Polymarket international is crypto-native, has lighter KYC, and is geoblocked from the US. They have separate liquidity and separate market offerings.
Are prediction market winnings taxable in the US?
Yes. The IRS generally treats prediction market gains as taxable income. The specific treatment (gambling income vs. capital gains vs. ordinary income) can depend on factors like whether you’re considered a professional trader. Consult a tax professional.
What happens if my state bans Polymarket while I have an active account?
Existing accounts in newly-restricted states are typically allowed to close out positions but not open new ones — what the platform calls “close-only” status. Funds can usually still be withdrawn, though processes vary.
Can I sue Polymarket if my state bans them?
The platform’s terms of service include arbitration clauses and jurisdictional language that make litigation difficult. State residents who lose access are generally limited to whatever remediation Polymarket offers (typically allowing close-out and withdrawal, but not damages).
The bottom line
For US users, Polymarket is now a legitimate option in most states under federal CFTC oversight, with the caveat that the state-level situation is unsettled and could change. Anyone in Arizona, Illinois, Massachusetts, Maryland, Michigan, Montana, Nevada, New Jersey, or Ohio is currently locked out and should look at Kalshi as the primary alternative.
For everyone else, the US platform is accessible — though it’s still rolling out from invite-only to general availability as of mid-2026 — and offers a regulated path to participating in prediction markets that didn’t exist a year ago.
New to Polymarket? See our how-to-use guide, our fee breakdown, or grab the current signup bonus codes for $20 free.
Last updated: May 2026. Legal status changes frequently. Always verify current state-level availability on Polymarket’s official site, and consult a lawyer for advice specific to your situation.