In this guide
Key takeaway: Polymarket operates legally across most territories, though regulatory clarity remains elusive in numerous jurisdictions. American users face explicit restrictions. Verify applicable gambling and investment regulations in your region before you begin trading.
Is Polymarket legal? The response varies significantly based on your location. Because Polymarket functions as a decentralised blockchain-based system, no single regulatory authority oversees it — yet national and regional laws still apply to individual participants.
United States — Blocked
US citizens and permanent residents cannot use Polymarket. Following a 2022 CFTC enforcement action that resulted in a $1.4 million fine over the provision of unregulated event derivatives, Polymarket ceased US operations and implements geographical blocking for American internet addresses. Circumventing this restriction through VPN technology breaches the platform's user agreement.
United Kingdom — Grey zone
The Gambling Commission in the UK has neither formally authorised nor prohibited prediction markets such as Polymarket. The platform remains accessible to British users, though they operate without official regulatory safeguards. Tax authorities expect all returns to be reported in line with HMRC requirements.
Germany — Grey zone
Under Germany's Glücksspielstaatsvertrag (GlüStV 2021) framework, online gambling faces comprehensive regulation. Prediction markets occupy an uncertain position — neither formally permitted nor expressly forbidden. German participants can access Polymarket without immediate barriers, though potential legal exposure persists. Consult our comprehensive German legal guide for additional detail.
Canada — Accessible
The Canadian federal government imposes no blanket restriction on consumer participation in prediction markets. Although provincial gambling rules differ across regions, Polymarket remains widely available and actively used throughout Canada.
Australia — Grey zone
Australia's Interactive Gambling Act concentrates enforcement on platform operators rather than individual users. Australians can engage with Polymarket with comparatively low legal exposure, though the regulatory environment lacks complete transparency.
⚠️ This article is for informational purposes only and does not constitute legal advice. Laws change frequently — consult a local lawyer for guidance specific to your situation.
Tax obligations everywhere
Across virtually all jurisdictions, traders must report their earnings to tax authorities. Capital Gains Tax may apply to UK profits. German participants face income tax obligations on their returns. Maintain thorough documentation of all transactions for compliance purposes.
PolyGram makes tax filing simpler by offering downloadable transaction records for all your activity. Start trading on PolyGram →