Is Polymarket Legal? Regulations by Country and U.S. State (2026 Guide)
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Polymarket is a prediction market that supports cryptocurrencies and allows people to invest in the results of real-life events. Users do not bet with a bookmaker (as in a sportsbook), but with each other. That is more of a trade than gambling activity, but, legally, it is a mess.
The confusion comes from how different regulators view Polymarket. Some call it a trading platform. Others see illegal gambling. It uses cryptocurrency, which adds another legal twist. And rules keep changing. In 2022, U.S. regulators forced Polymarket to block American users. But in 2025, it relaunched in the U.S. under strict CFTC oversight.
So is Polymarket legal? It will depend on three facts: location, version of Polymarket, and time of inquiry. The countries either permit it, bar it, or are in the gray area. Even in the U.S., state laws vary. Local rules should always be verified before using Polymarket. “Legal today” may not necessarily be “legal tomorrow.”
Key Takeaways: Where Is Polymarket Legal?
- Polymarket is a peer-to-peer trading platform, so users trade crypto event contracts rather than betting with a sportsbook.
- Polymarket was banned for U.S. users in 2022, and it is returning under CFTC oversight, but state rules still vary.
- Several European countries treat Polymarket as unlicensed gambling, so France, Belgium, Poland, and Italy block access.
- Polymarket restricts access in 30+ countries, and some places are closed-only, so you can exit but not open trades.
- Using a VPN to bypass Polymarket blocks breaks its rules, risks freezes, and can violate local law.
- Polymarket’s legality depends on your location, timing, and app version, so check local rules and consider alternatives.
Is Polymarket Legal in the United States?
In the United States, Polymarket is legal, however, with the tight control of the Commodity Futures Trading Commission (CFTC). It shut down U.S. users following a January 2022 settlement, and re-emerged in late 2025 with a separate, regulated U.S. app and a limited release. State rules still matter, especially for sports markets.
Next, we’ll cover why it was banned and what changed.
Historical Context: Why Polymarket Was Banned in the U.S.
Polymarket’s U.S. problems peaked in January 2022 with a CFTC settlement. The CFTC said Polymarket offered off-exchange event-based swaps without registering with the regulator. It also failed to register as a Designated Contract Market (DCM) or Swap Execution Facility (SEF), which regulators expect for this kind of trading activity.
To resolve the case, Polymarket’s parent company paid a $1.4M fine and agreed to stop serving U.S. customers. Polymarket then exited the U.S. and blocked American users. If you tried to access from the U.S., you typically hit a wall. The message was clear.
But the internet loves loopholes. Some U.S. users kept trading offshore using VPNs and other workarounds. That puts them in an illegal or gray area, depending on facts and enforcement. It also created risk for Polymarket, since the platform had promised to stay out.
The DOJ looked into whether Americans were still accessing Polymarket after the 2022 settlement. That raised the stakes for everyone involved. From 2022 to 2024, using Polymarket from the U.S. wasn’t just against the platform’s rules; it also carried real legal risk.
Current Status: Polymarket Regulation Explained
Polymarket acquired QCEX in July 2025 for $112 million. QCEX had previously obtained CFTC licenses as an exchange and clearinghouse; thus, the acquisition created a legitimate pathway through which Polymarket could re-enter the U.S market. It was also a transition to a non-offshore access to a regulated operation.
Polymarket was used as a commodities venue by the CFTC. By the end of 2025, it had an amended designation of Designated Contract Market, requiring event contracts to comply with exchange-like rules, such as clearing, reporting, and regulated intermediaries. Polymarket transitioned to managed rails.
In September 2025, the CFTC published a no-action letter to reduce the burden of the launch. Subsequently, Polymarket was relaunched in the U.S. in December 2025 as an invite-only platform and with restricted markets. This gradual implementation is reminding the users that legality does not necessarily mean access, even for U.S. residents.
There are two Polymarkets today. The global platform utilizes crypto wallets and is still geoblocked in numerous countries. The app, regulated by the U.S. CFTC, probably with full Know Your Customer (KYC) requirements, and could send the trades to brokers or FCMs — it is more finance-like than online betting.
The other significant alteration was by mid-2025, when the DOJ and the CFTC resolved cases related to the previous activities of Polymarket, which provided the company with space to restructure under supervision.
But still, the legal question remains: are these contracts trading or gambling by another name?
This tension is at the center of the Kalshi lawsuits. Although it is regulated by the CFTC at the federal level, states argue that its sports-like contracts violate state gambling laws.
Polymarket has indicated that if courts side with the states, similar restrictions could ultimately be applied to other prediction markets as well. Conversely, if federal preemption prevails, states would have little authority to regulate or restrict these markets.
The Supreme Court’s precedent might be the determining factor in the case of growing state-federal disagreements. Federal preemption, gambling definitions, or agency authority would be decided, and this would change what prediction markets can provide across the country.
Today, Polymarket is legally recognized by the CFTC in the U.S., but access and permitted markets remain different.
Polymarket Legality by U.S. State
Even with federal approval, Polymarket’s acceptance can vary by state. State gambling laws and attitudes play a big role.
Here’s a snapshot of how some key states stand:
- California likely allows CFTC-regulated event contracts, even without sports betting, but tribal groups are pushing lawsuits and political pressure, so future limits remain possible.
- Texas has no sports betting, yet CFTC-regulated prediction markets operate as a workaround, and officials haven’t moved against them, so access looks straightforward for now.
- Florida’s laws don’t clearly address prediction markets, so the regulated U.S. platform likely works, but sports-betting, politics, and tribal interests could change the mood fast.
- New York allows the regulated platform today, but lawmakers are considering restrictions on sports-style contracts, so you should watch for new rules and enforcement.
- Nevada treats sports-style contracts like unlicensed betting, has targeted Kalshi, and may pressure geoblocks, so Polymarket access there is riskier.
- New Jersey, Massachusetts, Pennsylvania, and Maryland have challenged Kalshi sports contracts.
- Washington’s strict gambling laws raise risk, so state pushback remains likely.
Always use the officially sanctioned U.S. platform so that you’re under the CFTC framework. And stay informed about your state’s stance.
If a state attorney general or gaming board declares prediction markets illegal gambling in your state, that could spell trouble. So far, though, no end-user (individual bettor) has been prosecuted for using a CFTC-regulated prediction market. The fights are happening at the company/regulator level. Still, it’s wise to be prudent.
Is Polymarket Legal in Europe?
In most of Europe, Polymarket is not legal or easily accessible.
Europe doesn’t have one regulator like the U.S. Instead, you face a patchwork of rules. Some countries treat prediction markets as gambling. Others treat them like financial products, closer to options. Either way, licenses matter.
Enforcement also changes by country. France pushed Polymarket to geoblock users after regulator scrutiny. Belgium and Poland blocked access too, and Germany and Italy appear on restricted lists. The result feels inconsistent, but the pattern is clear: more countries are moving toward bans, not approvals.
- Some regulators apply EU and local gambling laws to prediction markets.
- Others apply financial rules that restrict derivatives and binary options-style contracts.
- Country-by-country enforcement means access can change fast, with little warning.
There is growing hostility in Europe, which has practical reasons. The regulators are concerned with the protection of consumers, underage or unidentified users, and money laundering. They also do not like the excuse that it is not betting but trading, since it may resemble a label swap. When it walks like gambling, they control it like gambling.
Retail binary options pressure across the EU, and high-quality national gambling regulators, make the climate difficult. Polymarket was blacklisted by Romania following a high volume of election-market trading and blocked by Switzerland, allegedly. Legality in Europe generally implies licensing first, access later.
Countries Where Polymarket Is Banned or Blocked
Polymarket blocks or limits access in certain countries to follow the rules. These geo-restrictions help it comply with international sanctions and embargoes, local financial regulations, gambling and prediction-market laws, as well as Anti-Money Laundering (AML) and KYC requirements. Put simply, it would rather block access than break laws.
Close-only means you can close existing positions and withdraw funds, but you can’t open new trades. Polymarket uses this when a country’s legal status changes, so users can exit safely without adding new risk.
👉 If Polymarket isn’t legal in your region, check out other top crypto prediction markets.
As of January 19, 2026, Polymarket is blocked, banned, or restricted in the following jurisdictions:
| Country/Region | Access Status | Primary Reason for Restriction |
|---|---|---|
| 🇦🇺 Australia | Blocked | Local gambling regulation (unlicensed online betting is not allowed, per ACMA) |
| 🇧🇪 Belgium | Blocked | Local gambling regulation (government blacklist of unlicensed gambling sites) |
| 🇧🇾 Belarus | Blocked | International sanctions (subject to U.S./EU sanctions, high AML risk) |
| 🇧🇮 Burundi | Blocked | International sanctions / AML concerns (U.S. sanctions and high-risk jurisdiction) |
| 🇨🇫 Central African Republic | Blocked | International sanctions (subject to sanctions; unstable financial environment) |
| 🇨🇩 Democratic Republic of Congo (Kinshasa) | Blocked | International sanctions (U.S./UN sanctions, conflict-related restrictions) |
| 🇨🇺 Cuba | Blocked | International sanctions (U.S. OFAC-sanctioned country) |
| 🇩🇪 Germany | Blocked | Local financial regulation (retail binary options/event trading banned without license) |
| 🇪🇹 Ethiopia | Blocked | International sanctions (U.S. sanctions and AML concerns) |
| 🇫🇷 France | Blocked | Local gambling regulation (ANJ determined Polymarket is unlicensed gambling) |
| 🇬🇧 United Kingdom | Blocked | Local financial regulation (UK bans crypto derivatives for retail; no UK gambling license) |
| 🇮🇷 Iran | Blocked | International sanctions (OFAC-sanctioned country) |
| 🇮🇶 Iraq | Blocked | International sanctions (various sanctions and high-risk AML status) |
| 🇮🇹 Italy | Blocked | Local gambling/financial regulation (unlicensed betting and EU binary options ban) |
| 🇰🇵 North Korea | Blocked | International sanctions (OFAC-sanctioned, comprehensive trade embargo) |
| 🇱🇧 Lebanon | Blocked | International sanctions (U.S. sanctions and terrorism-related restrictions) |
| 🇱🇾 Libya | Blocked | International sanctions (sanctioned conflict zone) |
| 🇲🇲 Myanmar (Burma) | Blocked | International sanctions (U.S. sanctions on regime, AML concerns) |
| 🇳🇮 Nicaragua | Blocked | International sanctions (U.S. sanctions on Nicaraguan officials/regime) |
| 🇵🇱 Poland | Close-only | Local gambling regulation (Ministry of Finance blocked Polymarket as unlicensed gambling) |
| 🇷🇺 Russia | Blocked | International sanctions (sanctions due to geopolitical conflicts) |
| 🇸🇬 Singapore | Close-only | Local gambling regulation (classified as illegal gambling by Singapore’s authorities) |
| 🇸🇴 Somalia | Blocked | International sanctions (sanctions and counter-terrorism measures) |
| 🇸🇸 South Sudan | Blocked | International sanctions (sanctioned conflict region) |
| 🇸🇩 Sudan | Blocked | International sanctions (U.S. sanctions and embargo) |
| 🇸🇾 Syria | Blocked | International sanctions (OFAC-sanctioned country) |
| 🇹🇭 Thailand | Close-only | Local gambling regulation (Thai authorities forbid unlicensed betting platforms) |
| 🇹🇼 Taiwan | Close-only | Regulatory compliance (treated similarly to a restricted jurisdiction; likely due to local law or political considerations) |
| 🇺🇸 United States | Restricted | Federal regulatory restrictions (CFTC settlement barred U.S. access); state laws |
| 🇻🇪 Venezuela | Blocked | International sanctions (U.S. sanctions on regime officials, AML concerns) |
| 🇾🇪 Yemen | Blocked | International sanctions (sanctions due to conflict and terrorism concerns) |
| 🇿🇼 Zimbabwe | Blocked | International sanctions (sanctions on officials, high AML risk) |
| 🇨🇦 Canada – Ontario | Blocked (region) | Local gambling regulation (provincial law requires iGaming license in Ontario) |
| 🇺🇦 Ukraine – Crimea, Donetsk, Luhansk | Blocked (regions) | International sanctions (conflict zones under sanctions/occupation) |
Risks and Legal Gray Areas to Know Before Using Polymarket
Although Polymarket may be legal in the jurisdiction where you live, you are still subject to regulatory whiplash. Regulations are subject to change, and you can lose access overnight. You might open positions by law, and wake up to find a nationwide ban or a new restriction. In case that happens, you may be lucky to get close-only access.
There is also the risk of account freezes. Polymarket applies geo-blocks and KYC checks, and thus, suspicious logins may result in reviews. The use of a VPN, traveling to a restricted country, or moving around a lot of places can lock your account. Then your money will be held up as support investigates.
Another problem with peer-to-peer markets is market manipulation. Big traders are able to manipulate odds and subject other traders to unfavorable prices.
There is also the risk of insider trading, whereby individuals who possess non-public information unfairly make gains. The problem of addiction is also severe. Limit your losses; do not keep trading until you run out of money, and retire.
Is Using a VPN to Access Polymarket Legal?
A VPN is not illegal as a privacy tool, which is not useful in this case. When you access Polymarket with the help of a VPN in a blocked area, you are breaking the rules of the platform and may face a ban or a freeze of your account. You might lose your money within a short time.
You are also at risk of lawsuits in the event that Polymarket is not allowed in your jurisdiction. A VPN will not leave any traces but on-chain actions are still visible. Don’t circumvent restrictions or use Reddit workarounds.
🚨 When Polymarket blocks your area, take that as a red light.
Can I get banned from Polymarket if I use a VPN?
Using a VPN to bypass Polymarket geoblocks can trigger account freezing quickly. Polymarket bans access from restricted locations, and it can detect common VPN IPs or sudden location changes. If it flags your account, it can suspend it while it investigates. That can stop withdrawals immediately.
A ban can also mean loss of funds. You may lose access to your balance, and you shouldn’t assume Polymarket will let you withdraw before closing the account. If it believes you deliberately violated restrictions, it can lock you out entirely. Fighting that decision can be slow and frustrating.
The use of VPN can stimulate KYC. Although the global location might allow you to do small transactions without a complete ID, bigger withdrawals tend to be checked.
In case your documents show that you are in a restricted country, the infraction is verified, and withdrawals are prohibited. The app under the control of the U.S. has a stricter KYC, which has previously identified anomalies.
A VPN adds privacy, but it isn’t a magic cloak. It encrypts your traffic and routes it through another server, so Polymarket may see the VPN location, not yours. Your internet provider also sees less detail. That’s the “do” list. The “don’t” list is bigger.
A VPN does not make one totally anonymous. Unless the policies of the provider specifically prohibit it, the provider is still able to see your actual IP address and your activity.
In case the records are subpoenaed by the authorities, they can correlate timestamps with your actual identity. And in case of the VPN connection being lost, it is possible that your actual IP will be exposed, leaving a distinct trail of logs.
The larger risk is blockchain transparency. All Polymarket transactions are on-chain, meaning that trades and wallet addresses are transparent. When you fund the wallet with a KYC-verified exchange, the association between the identity and the on-chain bets is self-evident. Mega wins and subsequent cash outs are even more scrutinized.
Operators of the platforms are typically targeted by law enforcement, but so can the casual users. Investigations can be initiated when there is high activity in large volumes, insider trading behavior, money-laundering indicators, or politically sensitive markets. Exchange records, blockchain analytics, and platform logs can be combined to identify people by the agencies.
🚨 Our team doesn’t encourage going around restrictions. Do not consider VPN access as a loophole. If Polymarket blocks your area, abide by the law and local regulations.
Final Verdict: Is Polymarket Legal?
Polymarket’s legality depends on where you are. It is legal and controlled in certain areas and limited or prohibited in others. The misunderstanding is based on the fact that various jurisdictions regard prediction markets as trading, gambling, or both. Thus, there is no universal law.
In the U.S., the legal framework is getting better under the CFTC supervision, though it is still developing. Certain states are resistant to it, and the availability of the platform may be restricted during rollouts.
Meanwhile, regulators in much of Europe regard Polymarket as unlicensed gambling and prohibit it. There are also those countries that lie in gray areas where the platform is available, yet its legality is not clear.
You should use Polymarket only if it’s legal where you live, and you’re comfortable with crypto risks. You should not use it if it’s banned, questionable, or if gambling habits are a concern. Before you sign up, check your location, the app version you’re using, and the current regulations.
👉 Learn More: Is Polymarket Legit? Safety & Risks Analysis
FAQs
What is Polymarket?
Is Polymarket a gambling site or a trading platform?
Does Polymarket pay out?
Can I withdraw money from Polymarket?
Do I need to pay taxes on Polymarket winnings?
References
- The CFTC’s Polymarket Decision – Bringing a New Crypto Events-Based Market into the Commodities Regulatory Fold (JDSupra)
- Polymarket acquires QCEX for $112 million in U.S. market re-entry bid (CDC Gaming)
- Polymarket set to relaunch in US as early as Friday (CDC Gaming)
- Unpacking a potential Polymarket ‘ban’ (Blockworks)
- Predictive markets set to make sports betting a big issue again (Capitol Weekly)
- Are The Walls Closing In On Polymarket After Latest European Ban? (GamesHub)
- Geographic Restrictions (Polymarket Docs)
- CFTC Orders Event-Based Binary Options Markets Operator to Pay $1.4 Million Penalty (CFTC)
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