Polymarket States: Where It’s Legal to Trade

Polymarket is a federally approved prediction market in the U.S. 

On Polymarket, users can trade contracts on sports and real-world events, such as politics. 

Polymarket reentered the regulated U.S. market by acquiring the holding company behind QCX LLC and QC Clearing LLC, together known as QCEX. QCX LLC is the CFTC-licensed derivatives exchange behind Polymarket US, and the CFTC lists QCX LLC as a designated contract market. 

Polymarket previously operated in the U.S. before running into a CFTC enforcement case.

In 2022, the CFTC ordered Blockratize, Inc., doing business as Polymarket, to pay a $1.4 million penalty for offering event-based binary options contracts without registering as a designated contract market or swap execution facility.

Polymarket then stayed out of the U.S. market for years before moving back through the QCEX deal. That comeback has put it into the same larger fight now surrounding Kalshi, Crypto.com, Robinhood, Coinbase, and other prediction market platforms.

Several states have challenged prediction markets by arguing that sports event contracts are really unlicensed sports betting. Polymarket has been named directly in some actions, while other fights involve the CFTC suing states over attempts to regulate federally listed event contracts.

Below is a state-by-state look at those disputes.

• Arizona: Arizona regulators sent cease-and-desist letters to both Kalshi and Polymarket. The larger case centered on Kalshi, after Arizona filed a 20-count criminal complaint on March 17, 2026, accusing the company of illegal gambling operations and election betting. The CFTC sued Arizona, Connecticut, and Illinois on April 2, 2026, arguing that prediction markets fall under federal oversight, and a federal judge temporarily paused Arizona’s criminal case on April 10.
• Connecticut: Connecticut issued cease-and-desist orders to prediction market operators, including Polymarket, before the CFTC sued Connecticut in April 2026 to challenge the state’s attempt to regulate those markets through gambling law. 
• Illinois: Illinois sent Polymarket a cease-and-desist letter in January 2026. The Illinois Gaming Board said Polymarket’s activity constituted illegal gambling and warned that failure to comply could lead to civil or criminal penalties.
• Massachusetts: Polymarket US sued Massachusetts officials in federal court on February 9, 2026, seeking declaratory and injunctive relief against state enforcement. The case was filed after Massachusetts had already moved against Kalshi’s sports prediction markets. 
• Michigan: Polymarket US filed a federal lawsuit against Michigan Attorney General Dana Nessel and state gaming officials on March 4, 2026. The case asked the court to block Michigan from enforcing state gambling laws against Polymarket’s federally regulated event contracts. 
• Nevada: Nevada Gaming Control Board filed a civil enforcement action against Polymarket in January 2026. The regulator argued that Polymarket’s event contracts, including sports event contracts, violate Nevada gaming law unless offered through the state’s licensed gaming system. A Carson City court later issued a temporary restraining order against Polymarket, finding at that early stage that the company was not licensed under the Nevada Gaming Control Act. 
• Tennessee: Tennessee sent cease-and-desist letters to Polymarket, Kalshi, and Crypto.com in January 2026. The Tennessee Sports Wagering Council accused the platforms of offering sports wagering products under the label of event contracts and demanded that they stop serving state residents.
• Wisconsin: Wisconsin filed civil suits against several CFTC-regulated prediction market companies, including Polymarket. The CFTC then sued Wisconsin, arguing that event contracts traded on designated contract markets fall under the CFTC’s exclusive jurisdiction.