Is Polymarket Legal in the US? Where It Stands in 2026

As at 13 October 2026, Polymarket is legal in the US under federal law through Polymarket US, the business name of QCX LLC, which the CFTC designated as a contract market on 9 July 2025. The international site at polymarket.com is not open to US traders, and several states argue that sports and other event contracts are illegal gambling, so what you can trade depends on where you live. So is Polymarket legal in the US in practice? This guide sets out the federal position, the state lawsuits, the split in the federal courts and the CFTC's new proposal, with a source for each point.

The Short Answer

• Federal law: Polymarket US operates as a designated contract market and derivatives clearing organisation under CFTC oversight (Polymarket US).
• The international site: not for US traders.
• States: Nevada has won a preliminary injunction against Polymarket US, and New York sued it on 24 September 2026.
• Courts: federal appeals courts disagree on whether states can treat sports event contracts as gambling, and the Supreme Court has been asked to decide.

Polymarket US and the International Site

Polymarket describes two products. The international one is crypto-based and runs on a blockchain. Polymarket US is a separate platform in US dollars, "built for US residents", regulated as an exchange and a clearing house (Polymarket US). The exchange is QCX LLC, trading as Polymarket US, and the clearing house is QC Clearing LLC, trading as Polymarket Clearing (Polymarket US Rulebook).

Customer money on Polymarket US sits in a dedicated customer account, separate from the company's operating funds (Polymarket US). On the international site, you hold funds in your own crypto wallet and trades settle on the Polygon blockchain. Our guide to how Polymarket works covers both from deposit to payout.

How Polymarket Got Here, 2022 to 2025

The 2022 order. On 3 January 2022 the CFTC ordered Blockratize, Inc., trading as Polymarket, to pay a $1.4 million penalty for offering event-based binary options without being registered as an exchange, to wind down the non-compliant markets on its site and to cease and desist. The CFTC found the conduct began in about June 2020 (CFTC).

Investigations closed. CNBC reported on 15 July 2025 that the Department of Justice and the CFTC had closed their investigations into whether Polymarket took bets from people in the US despite its 2022 commitments, with no charges brought (CNBC).

A regulated US exchange. The CFTC designated QCX LLC as a contract market on 9 July 2025 (CFTC). Later that month Polymarket bought QCX and its clearing house, QC Clearing, for $112 million in cash and shares, according to the seller, Quadcode (Quadcode).

Letters and approvals. CFTC staff gave QCX and QC Clearing a no-action letter on swap data reporting on 2 September 2025 (CFTC Letter 25-28). On 25 November 2025 Polymarket announced an amended order of designation that lets customers trade through brokers and futures commission merchants (Polymarket). A further letter on 11 December 2025 extended the reporting relief (CFTC Letter 25-48), and a staff letter of 13 May 2026 covers QCX among many event contract exchanges. That letter says plainly that it does not address whether any covered contract is consistent with the law (CFTC Letter 26-14). No-action relief is about reporting, not a ruling that every contract is lawful.

The States Pushing Back

States regulate gambling, and several say sports and other event contracts are gambling that needs their licence. By Kalshi's own count in August 2026, twenty states were in active litigation over prediction markets (Kalshi). The actions against Polymarket US that state regulators have published themselves:

State	Action	Date	Source
Nevada	Gaming Control Board sues Polymarket's entities in Carson City, seeking an injunction against unlicensed wagering	16 Jan 2026	Nevada Gaming Control Board
Nevada	State court grants the Board a preliminary injunction against QCX LLC, trading as Polymarket US	29 May 2026	Nevada Gaming Control Board
New York	Attorney General and Governor sue QCX LLC, trading as Polymarket US, as an unlicensed gambling operation	24 Sep 2026	New York Attorney General

Nevada's Board says it treats sports event contracts, and some other event contracts, as wagering under state law that must be licensed. New York's suit alleges that Polymarket's markets meet the legal definition of gambling, that it holds no licence from the New York State Gaming Commission, and that it is open to 18 to 20 year olds although the state sets 21 for mobile sports betting. New York seeks to stop it operating, restitution, and penalties of three times its gains. These are allegations; no court has ruled on them.

The federal government is on the other side. On 2 April 2026 the CFTC sued Arizona, Connecticut and Illinois to assert its exclusive jurisdiction over event contracts on registered exchanges (CFTC).

The Federal Courts Are Split

The central question is whether federal commodities law overrides state gambling law for sports event contracts on a CFTC-designated exchange. The leading cases involve Kalshi, but the answer applies to Polymarket US too.

Court	Case	Decided	Result
Third Circuit (New Jersey)	KalshiEX v. Flaherty	6 Apr 2026	2 to 1 for Kalshi: it is likely to win its argument that federal law pre-empts New Jersey's (opinion)
Ninth Circuit (Nevada)	KalshiEX v. Assad	28 Aug 2026	Against Kalshi: its sports contracts are likely not swaps, so no pre-emption (opinion)
Sixth Circuit (Ohio, Tennessee)	KalshiEX v. Schuler	25 Sep 2026	Unanimously against Kalshi, as reported by The Block (The Block)

New Jersey has asked the Supreme Court to review the Third Circuit's decision. The petition was filed on 2 September 2026, and Kalshi's response is due on 9 November 2026 (Supreme Court docket 26-299). Until the Court acts, the answer can depend on which circuit you live in.

What the CFTC Proposed on 9 October 2026

On 9 October 2026 the CFTC asked for comments on a proposed rule that would expressly define the term "swap" to include event contracts, including those on sports, politics, culture and weather (CFTC). The proposal (RIN 3038-AF82) takes comments for 30 days after it is published in the Federal Register (CFTC proposal).

It matters because both the Ninth and Sixth Circuits turned on whether sports contracts are swaps. A proposed rule is not law, and the courts will decide how much weight a final rule carries.

Who Can Sign Up for Polymarket US

• Age: at least 18, and of age of majority in your state or country of residence (Polymarket US Rulebook).
• Identity: legal name, date of birth, address, phone number and Social Security number, sometimes a government ID and a selfie, all before you can deposit or trade (Polymarket US).
• Location: the participant agreement bars anyone domiciled, resident or located where trading is prohibited by law or by Polymarket US policy, and lets it block access accordingly (Polymarket US).

Polymarket US does not publish a list of the states where it is unavailable on the documentation pages we could read, as at 13 October 2026. It lists availability in its app and terms, and that is the place to check where you live. Kalshi's position, for comparison, is set out in how Kalshi works and Kalshi vs Polymarket.

Polymarket US also runs sign-up credits, such as $25 after a first deposit of at least $10, which can be traded but not withdrawn as cash (Polymarket US). They sit on our bonuses page with other offers.

Can Americans Use the International Site?

No. Polymarket's terms bar US persons from trading on polymarket.com and point them to Polymarket US; using a VPN to get round the block breaks the terms. The investigations closed in 2025 were about that question: whether Polymarket was taking bets from people in the US despite its 2022 commitments (CNBC). Outside the US, the international site is also blocked by some regulators, including Australia's (ACMA).

This Is Not Legal Advice

This guide describes public records as at 13 October 2026. It is not legal or financial advice, and it cannot tell you whether trading is lawful where you are. The position is moving fast: a Supreme Court decision, a final CFTC rule or a state court ruling could change it. Check Polymarket US's own terms and your state's rules, and take legal advice if you need certainty. For the wider field, see what prediction markets are, the Polymarket platform profile and our prediction markets page.