Are Prediction Markets Legal in the US? Sourced Checklist
US access depends on the product, where you are, and the specific contract. Here's a sourced checklist — not legal advice.
Published January 15, 2026 · Sources reviewed October 26, 2026
This guide does not give a legal opinion and does not report the current outcome of any court case. It summarizes a few primary sources, reviewed on October 26, 2026, and gives a checklist for working out what applies to you. If anything stays unclear, the answer is official platform support or qualified counsel — never a workaround.
What the primary sources say
Kalshi: a 2020 CFTC press release announced Kalshi's designation as a designated contract market (DCM). That is a federal designation from 2020; it is not, by itself, a statement about every contract, every state, or today's status.
Federal–state dispute: a CFTC press release dated June 12, 2026 announced a CFTC lawsuit against New Mexico. In it, the CFTC asserts its jurisdiction over event contracts, which the state contests. This guide does not state how that case or any other has been decided.
Polymarket's international platform: Polymarket's geoblock documentation lists the United States as close-only for the international front end and API — users there can close existing positions but not open new ones. That is a specific access rule, not a universal statement about all Polymarket products.
Polymarket US: Polymarket US: Polymarket's US documentation describes a separately operated US product and includes order examples denominated in USD. Its account and eligibility terms are in that product's own documentation; this guide does not summarize them.
Which source answers which question
There is no simple ranking where one kind of document always wins. Match the source to the question.
Is it legal for me? Applicable current law, court orders and regulator orders govern, as interpreted by qualified counsel for your situation.
What has a regulator or state announced or argued? Press releases and complaints establish an announcement or a litigation position — not a binding outcome.
Can I access this product? The platform's current terms, eligibility and geoblock documentation define operational access. They do not decide legality.
What about my account? Official platform support can help with your account. It does not give legal rulings.
News coverage and third-party summaries, including this page, are starting points only. Check every source's date.
Eligibility checklist
Work through these in order; stop at the first item you can't answer.
| Step | Question | Where to check |
|---|---|---|
| 1. Product | Which exact product are you using — e.g. Polymarket's international platform, Polymarket US, or Kalshi? | The product's own website and documentation |
| 2. Jurisdiction | Where are you physically located, and where are you resident? | The product's geoblock or eligibility page |
| 3. Access level | Can you open positions, or only close them (close-only)? | Geoblock/eligibility documentation |
| 4. Contract | Is the specific contract offered to you in your location? | The contract page and product terms |
| 5. Account | Do you meet the account requirements (identity, age, funding method)? | The product's account terms |
| 6. Changes | Has anything changed since the source date? | Regulator releases; platform announcements |
Stop conditions
Stop and ask official platform support or qualified counsel if: the product's documentation doesn't clearly cover your location; a contract's availability is unclear; sources conflict; or your situation involves taxes, custody or business use. Never use a VPN or other method to bypass a geoblock or eligibility check.
What this guide deliberately does not cover
It does not assess state-by-state legality, tax treatment, custody protections, or the status of other platforms. Those depend on facts and sources not reviewed here. Where we couldn't verify a claim against a primary source, we removed it rather than guess.
Sources
Primary sources reviewed October 26, 2026. Our summaries are bounded by these pages; check them for changes.