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Prediction Markets101

Is Polymarket legal in United States?

Regulatory status of Polymarket and Kalshi in United States, including local gambling law, crypto regulation, tax treatment, and available alternatives.

Prediction Markets 101 editorial team Updated April 16, 2026

Short answer: Polymarket is restricted in United States as of April 2026. Polymarket does not require KYC at signup — crypto deposits work worldwide. Kalshi is US-only, not available here regardless of local law.

Access status

Polymarket access: Restricted. Polymarket settled with the CFTC in January 2022 for $1.4M and agreed to block US residents. The main app still geoblocks US IP addresses. A November 2024 CFTC no-action letter clarified some event-contract pathways, but Polymarket itself remains off-limits to US retail. December 2024: FBI raid on Polymarket CEO reported (no charges).

Kalshi access: Fully legal and CFTC-regulated. Kalshi operates a federally-regulated Designated Contract Market (DCM) offering event contracts to US residents in all 50 states. Kalshi prevailed in its October 2024 federal court ruling allowing political event contracts.

Local law

Commodity Exchange Act. CFTC Order 22-09 against Polymarket. KalshiEX DCM approval 2020. Unlawful Internet Gambling Enforcement Act (UIGEA). State-level gambling law varies.

VPN usage: Common among residents accessing geoblocked platforms. Polymarket does not require KYC at signup; crypto deposits work without fiat rails.

Locally-available alternatives

  • Kalshi (CFTC-regulated)
  • PredictIt (limited, legal in most states)
  • Robinhood Event Contracts
  • Interactive Brokers ForecastEx

Tax treatment

Gains typically treated as ordinary income or short-term capital gains. 1099s issued by regulated operators (Kalshi).

Local currency: USD. Tax details are general guidance, not a substitute for a qualified local tax professional.

Accessing Polymarket from United States

Polymarket access from United States is restricted at the platform or ISP level. Users typically access it with a VPN and crypto deposits — no KYC at signup on Polymarket's side. Bank or payment-processor friction is more common than direct enforcement against individuals.

FAQ

Do I need KYC for Polymarket in United States?

No KYC is required to sign up or trade on Polymarket. Identity verification triggers only at fiat offramps above ~$10k via MoonPay or Onramper. Deposits and most trading are self-custodial via a Polygon wallet.

What is the tax treatment for Polymarket gains in United States?

Gains typically treated as ordinary income or short-term capital gains. 1099s issued by regulated operators (Kalshi).

Can I use a VPN to access Polymarket from United States?

Technically yes — and it's the typical path where local access is restricted. A non-US IP (or non-restricted-country IP) plus crypto deposits gets you a functional account. Polymarket does not require KYC at signup. At large fiat offramps, a mismatched ID can result in account restriction; users who keep withdrawals to self-custody crypto avoid this. Polymarket's terms of service address VPN use — review them for your own risk tolerance.

Other countries in Americas

Last verified

This page was last verified on April 16, 2026. Law and platform policies can change — we review each country page at least quarterly.

Nothing here is legal advice. For a decision with real money on the line, consult a local lawyer familiar with derivatives or gambling law.