Key takeaway: Polymarket remains available across most nations beyond North America. Operating as a decentralised blockchain-based system without centralised licensing, its lawfulness differs significantly by region — from outright prohibition (United States) to regulatory ambiguity (Canada, United Kingdom, European Union) to full permissibility (much of Asia, Africa, Latin America).
Whether "Polymarket operates legally" represents the most frequently posed question about prediction markets online. Your answer hinges on your location, how your nation categorises prediction markets (as gambling, regulated financial products, or information exchanges), and enforcement approaches your authorities take towards international platforms.
United States — Formally Prohibited
US citizens and permanent residents cannot access Polymarket. During 2022, Polymarket settled enforcement action with the CFTC (Commodity Futures Trading Commission), resulting in a $1.4 million penalty for offering event derivatives without proper registration. The service subsequently exited the American market and deployed IP-blocking plus identity verification protocols.
American participants seeking lawful prediction market participation should consider Kalshi, which secured CFTC authorisation in 2020 and continues broadening its contract catalogue.
European Union — Shifting Regulatory Framework
EU member nations lack harmonised regulation governing prediction markets. MiCA (Markets in Crypto-Assets Regulation) achieved full implementation in 2024, introducing fresh obligations for blockchain-based trading venues. Nonetheless, prediction markets themselves fall outside MiCA's direct scope.
Practically speaking, Polymarket functions throughout EU territories. Each country enforces distinct gambling and financial regulation rules:
- Germany: Ambiguous status under GlüStV 2021. Not formally prohibited. Review our German legal guide
- France: ANJ (national gaming regulator) has not issued specific guidance on prediction markets. Operational
- Netherlands: KSA actively restricts unlicensed gaming operators. Prediction markets occupy uncertain legal territory
- Spain: DGOJ oversees internet gambling licensing. Polymarket functions without authorisation but remains technically usable
United Kingdom — Available, Largely Unregulated
The UK Gambling Commission has neither authorised nor restricted Polymarket's operation. Residents of Britain freely utilise the platform. The FCA's stance regarding blockchain-based prediction markets remains undefined. For revenue purposes, HMRC generally treats prediction market earnings as either capital appreciation or other income categories.
Canada — Fully Accessible
Canadian federal legislation contains no prohibition against residents engaging in prediction markets. Provincial gaming rules primarily target service providers rather than individual participants. Canadians participate in Polymarket without legal impediment.
Australia — Uncertain Territory
The Interactive Gambling Act establishes penalties for operators furnishing services to Australian residents without proper licensing. Direct user participation in overseas prediction markets avoids explicit criminalisation, though the regulatory environment remains unclear.
Asia, Africa, South America & Other Regions
Polymarket enjoys substantial accessibility throughout East Asia, South Asia, Middle Eastern markets, Latin America, and African nations. Exceptions include mainland China (comprehensive digital restrictions) and select nations implementing comprehensive cryptocurrency prohibitions.
Tax Liabilities Apply Universally
Even where Polymarket's legality remains uncertain, prediction market earnings constitute taxable revenue in virtually all jurisdictions worldwide. PolyGram supplies comprehensive transaction record downloads incorporating FIFO cost-basis calculations suitable for tax filings. Always engage a qualified tax professional locally.
This content serves informational purposes exclusively and should not be construed as legal counsel. Regulatory requirements evolve continuously. Seek guidance from a qualified legal professional licensed in your territory prior to engaging in trading activity.
Engage prediction markets internationally via PolyGram. Begin trading on PolyGram →