In this guide
Key takeaway: Polymarket operates legally across most regions worldwide, though it occupies uncertain regulatory territory in numerous places. American users face restrictions. Verify applicable gambling and financial regulations in your jurisdiction before you begin trading.
Is Polymarket legal? The response varies based on your location. Because Polymarket functions as a decentralised blockchain-based protocol, no single regulatory authority oversees it — yet national legislation still applies to participants regardless.
United States — Blocked
American citizens and permanent residents cannot use Polymarket. Following a $1.4 million settlement with the CFTC in 2022 stemming from the provision of unregistered event derivatives, Polymarket exited the American market and implements geographic blocking for US-based internet connections. Circumventing this restriction through virtual private networks breaches Polymarket's user agreement.
United Kingdom — Grey zone
Britain's Gambling Commission has neither formally authorised nor prohibited platforms like Polymarket for prediction markets. The service remains openly available to UK-based users, though they operate outside formal regulatory safeguards. Income generated through the platform must be reported in accordance with HMRC tax requirements.
Germany — Grey zone
The German gambling framework under the Glücksspielstaatsvertrag (GlüStV 2021) establishes rules for internet-based wagering activities. Prediction markets sit within a murky legal space — neither formally permitted nor expressly forbidden. Residents of Germany can freely access Polymarket, though potential legal exposure remains. Our comprehensive German legal overview explores this further.
Canada — Accessible
No nationwide Canadian legislation prohibits consumer participation in prediction markets. While provincial gaming rules differ across the country, Polymarket remains broadly available and actively used by Canadian market participants.
Australia — Grey zone
The Interactive Gambling Act in Australia concentrates its enforcement on platform operators rather than end-users. Australians utilising Polymarket face relatively minimal regulatory exposure, though the legal framework remains somewhat ambiguous.
⚠️ This article serves educational purposes and should not be interpreted as professional legal counsel. Regulations shift regularly — seek advice from a qualified legal professional in your region for circumstances tailored to you.
Tax obligations everywhere
Across virtually all nations, trading gains must be reported to tax authorities. Within the UK, such earnings may incur Capital Gains Tax liability. German traders face income tax on their earnings. Maintain thorough documentation of all transactions for compliance purposes.
PolyGram supplies a downloadable record of all your transactions to streamline your tax filing process. Start trading on PolyGram →