Is Polymarket Legal in the United States? CFTC-Regulated + Ninth Circuit Ruling (May 2026)

Yes, Polymarket is legal in the United States. The platform has operated as a CFTC-regulated Designated Contract Market since November 2025, open to all 50 states. US users sign up directly, verify their identity, and trade without a VPN. The legal picture in May 2026 has new wrinkles though — the Ninth Circuit just denied Polymarket and Kalshi's request to pause Nevada and Washington state lawsuits, and three more states (Illinois, Connecticut, Arizona) are now in federal court with the Trump administration over prediction market regulation.

Current Status

Available and CFTC-Regulated -- Polymarket returned to the US market in late 2025 after spending roughly three years offshore following a 2022 CFTC settlement. The path back involved acquiring QCX LLC, a CFTC-licensed derivatives exchange and clearinghouse, for $112 million in July 2025. By November 2025, the CFTC granted Polymarket an Amended Order of Designation, and the platform relaunched for US users in December 2025.

How Polymarket Got US Approval

The timeline matters for understanding where things stand today:

• January 2022 -- CFTC settled with Polymarket for operating an unregistered trading facility. Polymarket paid a $1.4 million fine and agreed to wind down non-compliant markets. US users were blocked.
• 2022-2025 -- Polymarket operated internationally while US users could not access the platform.
• July 2025 -- Polymarket acquired QCX LLC (CFTC-registered exchange and clearinghouse) for $112 million.
• November 2025 -- CFTC granted Amended Order of Designation, authorizing Polymarket to operate as a regulated exchange in the US.
• December 2025 -- US version launched with full KYC requirements and regulatory protections.

The QCX acquisition was the key move. Rather than applying for a new CFTC license from scratch (a process that can take years), Polymarket bought an existing licensed entity and built on top of it.

State-Level Legal Battles

While Polymarket has clear federal authorization, some states have pushed back. As of April 2026, at least 11 states have raised concerns or taken legal action against prediction market platforms. The main challenges come from states that classify prediction markets as gambling under state law.

Tennessee -- The Tennessee Sports Wagering Council sent cease-and-desist letters to Polymarket, alleging violations of state gaming law, age verification requirements, and responsible gambling rules.

Nevada -- The Nevada Gaming Control Board filed a lawsuit in January 2026 to prevent Polymarket from offering sports event contracts to Nevada residents without a state gaming license.

Third Circuit Ruling (April 6, 2026) -- A federal appeals court ruled that sports prediction contracts qualify as swaps under federal law, exempting them from state gambling regulations. This ruling strengthened federal preemption and bolstered Polymarket's legal position across the country. The case is likely to be cited in ongoing state-level disputes.

Ninth Circuit Ruling (May 21, 2026) -- The Ninth Circuit denied Kalshi and Polymarket's bid to pause enforcement actions in Nevada and Washington, with judges finding the companies hadn't shown they were likely to win on the federal-jurisdiction argument. This was a setback for the federal-preemption position the Third Circuit had endorsed weeks earlier. The two appeals courts are now pointing in different directions, which usually means the Supreme Court eventually weighs in.

Trump Administration Lawsuits (April 2026) -- The Department of Justice sued Illinois, Connecticut, and Arizona in federal court, arguing prediction markets are exclusively a federal matter under CFTC authority. These cases are pending and could consolidate the legal picture nationwide if they reach a higher court.

Indonesia Block (May 22, 2026) -- Outside the US, Indonesia's Ministry of Communication and Digital Affairs blocked access to Polymarket on May 22. Ireland's Tánaiste Simon Harris announced on May 19 that his government would investigate suspicious bets on the platform. Worth noting for US traders who might travel internationally.

The pattern is a tension between federal regulators (who see prediction markets as derivatives) and state regulators (who see them as gambling). Federal law had been winning until the Ninth Circuit pushback. The dust hasn't settled.

How to Get Started from the US

1. Create your account -- Visit Polymarket and sign up with your email. Follow our account creation guide for step-by-step instructions.
2. Complete KYC -- US users must verify their identity. This is a federal requirement and usually takes a few minutes with a government ID.
3. Deposit funds -- You can fund your account with a credit/debit card (via MoonPay), transfer USDC from a crypto exchange, or bridge funds from another blockchain.
4. Start trading -- Browse markets and place your first trade.

Funding Methods for US Users

• Credit/debit card -- Buy USDC directly through Polymarket's MoonPay integration. Fastest option but carries a small processing fee.
• Coinbase -- Buy USDC on Coinbase and transfer to your Polymarket wallet address. Low fees if you use Coinbase Advanced.
• Other exchanges -- Kraken, Gemini, and other US exchanges support USDC purchases and withdrawals to Polygon.
• Crypto bridge -- If you already hold crypto on Ethereum or another chain, you can bridge to Polygon and convert to USDC.

Tax Rules for US Traders

The IRS treats prediction market profits as capital gains:

• Short-term gains -- If you hold shares for less than one year, gains are taxed at your ordinary income tax rate.
• Long-term gains -- Shares held for more than one year qualify for lower long-term capital gains rates (0%, 15%, or 20% depending on income).
• Losses -- You can deduct prediction market losses against gains, up to $3,000 per year against ordinary income.
• Record keeping -- Track your cost basis for every trade. Polymarket provides transaction history, but the responsibility to report accurately falls on you.
• 1099 forms -- As a CFTC-regulated platform, Polymarket may issue 1099 forms for US users. Check with a tax professional for your specific situation.

For more details, see our full tax guide.

Polymarket vs US Alternatives

Now that Polymarket is available in the US, how does it compare to other US-legal platforms?

Feature	Polymarket	Kalshi	Robinhood
Regulation	CFTC	CFTC	CFTC
Fees	~2% taker, 0% maker	~7% of profits	Built into spread
Deposit	USDC, card	Bank, card	Bank transfer
Market Count	Thousands	Hundreds	Dozens
Sports Markets	4,000+	Limited	Limited
Daily Volume	$100M+	~$30M	Not disclosed

Polymarket's main advantage is liquidity. Deeper order books mean tighter spreads and better prices, especially on popular markets. The tradeoff is that you need to use USDC rather than depositing dollars directly from a bank account.

For a full comparison, see our Polymarket vs Kalshi guide and alternatives breakdown.

Main Exchange Expansion: What's Coming Next

In late April 2026, Bloomberg reported that Polymarket is in talks with the CFTC to lift the restriction preventing US users from accessing its main overseas exchange. This is separate from the US-only regulated platform that launched in December 2025.

Why it matters. The main Polymarket exchange handles over $10 billion in monthly trading volume and carries far deeper liquidity than the US-only site. If the CFTC approves the move, US traders would get access to tighter spreads, more markets, and the same order books that international traders use.

Where things stand. The CFTC would need to vote to remove the US block, which stems from the 2022 settlement. That process may be simpler right now because four commission seats are vacant, leaving Chairman Michael Selig as the sole sitting commissioner. No timeline has been announced, but the conversations are active.

What this means for traders. If you already use Polymarket through the US-regulated platform, nothing changes immediately. The existing site will keep running. If and when the main exchange opens to US users, you'd likely gain access to higher-volume markets and better pricing through a single account. Keep an eye on CFTC announcements for updates.

Full Country Availability List

See the complete breakdown in our Polymarket Restricted Countries List.

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