In this guide
Key takeaway: Polymarket operates across most territories outside North America. As a decentralised blockchain protocol lacking a single regulator, its lawfulness hinges on your location. The landscape ranges from outright prohibition (United States) through regulatory ambiguity (UK, EU, Australia) to permissive environments (much of Asia, Africa, Latin America).
Perhaps the most frequently asked question about prediction markets is "can I legally use Polymarket?" The response is inherently jurisdictional—it hinges on your residence, how your nation's authorities classify prediction markets (whether as wagering, financial products, or information venues), and the enforcement posture your regulator takes toward international platforms.
United States — Explicitly Blocked
US-based participants cannot access Polymarket. Following a 2022 enforcement action, Polymarket settled with the CFTC (Commodity Futures Trading Commission) for $1.4 million due to operating event contracts without proper authorisation. The platform subsequently exited the American market, deploying geographic restrictions and identity verification protocols.
Americans seeking lawful prediction market participation should explore Kalshi, which obtained CFTC clearance in 2020 and continues broadening its contract catalogue.
European Union — Evolving Regulation
EU member states lack a harmonised regulatory framework for prediction markets. MiCA (Markets in Crypto-Assets Regulation), fully operational since 2024, imposes fresh compliance obligations on cryptocurrency trading venues. Nonetheless, prediction markets remain outside MiCA's explicit scope.
Practically speaking, Polymarket functions across EU territories. Each member state applies distinct gambling and financial conduct standards:
- Germany: Regulatory grey area under GlüStV 2021. Not formally prohibited. See our German legal guide
- France: ANJ (the national gambling regulator) has issued no specific ruling on prediction markets. Usable
- Netherlands: KSA aggressively pursues unlicensed gambling operators. Prediction markets occupy uncertain legal territory
- Spain: DGOJ oversees internet gambling licensing. Polymarket remains technically available but operates without a licence
United Kingdom — Accessible, Unregulated
Polymarket has neither received authorisation nor faced prohibition from the UK Gambling Commission. Users in Britain can engage with the platform without impediment. The FCA has not articulated a definitive stance on blockchain-based prediction markets. For revenue reporting, HMRC generally treats prediction market winnings as either capital appreciation or miscellaneous receipts.
Canada — Accessible
Canadian federal legislation contains no blanket prohibition on consumer participation in prediction markets. Provincial gambling statutes concentrate regulatory authority on service providers rather than end-users. Canadian participants utilise Polymarket without legal barriers.
Australia — Grey Zone
The Interactive Gambling Act primarily constrains operators who furnish gambling services to Australian residents without authorisation. Direct user engagement with foreign prediction platforms remains technically unaddressed by statute, creating legal uncertainty.
Asia & Rest of World
Polymarket enjoys broad accessibility throughout South and Southeast Asia, the Gulf region, South America, and sub-Saharan Africa. Exceptions include mainland China (subject to comprehensive internet censorship) and select nations maintaining comprehensive cryptocurrency prohibitions.
Tax Obligations Are Universal
Even where Polymarket enjoys legal status, earnings from prediction markets constitute taxable income across nearly all jurisdictions. PolyGram furnishes comprehensive transaction records with FIFO accounting to simplify compliance reporting. Engage a qualified tax professional in your territory before commencing trading.
This content serves informational purposes and should not be construed as legal counsel. Regulatory frameworks evolve continuously. Retain independent legal counsel licensed in your jurisdiction prior to engaging in trading activity.
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