Three questions come up constantly from people encountering Polymarket for the first time: what is Polymarket, how does Polymarket work, and is Polymarket legal in the US?
This piece answers all three, and it focuses on one product: Polymarket US, the regulated version built for American traders.
The short answer: Polymarket US is a CFTC-regulated exchange where you trade yes-or-no contracts on real-world events using US dollars, and yes, it is legal in the United States.
Polymarket also runs a separate international platform that settles in crypto and is blocked for US users, but this article doesn't cover that. Everything below is specific to Polymarket US.
What Is Polymarket?
Polymarket US is a federally regulated exchange for trading event contracts, meaning you buy and sell shares tied to whether something specific will happen. Will a given team win a championship? Will a certain economic report come in above or below expectations? Each of those questions becomes its own market, with a share price between $0.01 and $0.99 that reflects the market's current implied probability.
Unlike the international Polymarket product, which runs on crypto rails, Polymarket US settles everything in US dollars and is registered with the Commodity Futures Trading Commission as a Designated Contract Market, the same regulatory category as major US derivatives exchanges.
How Does Polymarket Work?
Once you understand what Polymarket is, how it actually works comes down to a few steps. You sign up, verify your identity, fund your account through a linked US bank account, then browse active markets and place an order to buy shares in the outcome you think will happen.
Prices move continuously as other traders buy and sell, just like a stock's price on an exchange. If your side wins, your shares settle at $1 each. If it loses, they settle at $0. You're never locked into a position until resolution either, since you can sell your shares back into the market at any point before the outcome is decided.
What Kinds of Markets Can You Trade on Polymarket?
The clearest way to understand Polymarket is to look at what people are actually trading. Sports and politics have the deepest, most liquid markets on Polymarket US today, with culture and economic categories still filling in. Here are 10 real examples spanning that range.
- Super Bowl LXI champion. As the 2026 season opened, the Los Angeles Rams sat as the standalone favorite to win Super Bowl LXI, priced well above the next closest team, with the Buffalo Bills, Seattle Seahawks, Baltimore Ravens, and Kansas City Chiefs forming the next tier.
- NFL MVP. The 2026-27 NFL MVP market has stayed tightly bunched at the top all preseason, with Josh Allen holding a narrow edge over a crowded field of quarterbacks and skill-position players.
- NCAA Tournament champion. Every March, Polymarket runs a full bracket-style market letting traders back a team to win the entire NCAA Men's Basketball Tournament, not just a single round.
- MLB MVP. Late-season award races run just as deep as championship markets. The 2026 NL MVP market has Pete Crow-Armstrong as the heavy favorite over Shohei Ohtani as the season winds down.
- 2026 midterm election control. The single highest-volume political question on the platform right now: which party controls the House and Senate after the November 3, 2026 midterms, with a Democratic sweep currently the most likely single outcome.
- Senate majority. A narrower version of the same race, specifically whether Republicans hold their current 53-seat majority or Democrats flip the four seats needed to take control.
- Fed interest rate decision. Ahead of the September 2026 FOMC meeting, traders were split nearly down the middle on whether the Fed would hike rates a quarter point or hold steady, the kind of macro event that moves markets well beyond Polymarket itself.
- Emmy Awards winner. Culture markets track televised awards shows in real time. Heading into the 2026 Emmys, "The Pitt" was the heavy favorite for Outstanding Drama Series, with its star Noah Wyle similarly favored for Lead Actor.
- Biggest movie opening weekend of the year. A running market that lets traders bet on which film will post the single largest opening weekend of the calendar year, updated as new releases hit theaters.
- Award-season nominee races. Beyond the winner markets, Polymarket runs narrower contracts on individual nominees and categories well before a ceremony airs, giving traders a way to react to shifting industry buzz months in advance.
New markets open constantly, and prices shift in real time, so treat these as a snapshot of the range available rather than a live board.
To see current pricing, check the app directly.
Live Pro Football: 2027 Champion Odds on Polymarket
Is Polymarket Legal in the US?
Yes. Polymarket US operates under a CFTC Designated Contract Market license held by QCX LLC, the regulated exchange Polymarket acquired for roughly $112 million in July 2025 specifically to re-enter the US market. The CFTC granted an Amended Order of Designation in November 2025, and Polymarket US officially relaunched for American traders in December 2025.
That regulatory path matters because Polymarket's original US operation was shut down in 2022 after a CFTC settlement over an unregistered platform. Polymarket US exists today because the company bought its way back in through an already-licensed exchange rather than trying to build a new license from scratch.
Which US States Can You Trade Polymarket In?
Federal approval doesn't automatically override every state's gambling laws, which is where the picture gets more complicated. Polymarket US is open in most states, but a handful have pushed back, arguing that event contracts function like sports betting under state law rather than a regulated derivative.
Nevada has been the most aggressive, with an active enforcement action against Polymarket that courts have so far declined to pause. A few other states have sent inquiries or filed their own challenges. Availability is checked automatically during signup based on your location, so the fastest way to confirm your specific state is simply to start the registration process.
Do You Need to Verify Your Identity to Trade on Polymarket?
Yes, and this is non-negotiable on a CFTC-regulated exchange. Polymarket US requires full identity verification before you can fund an account or place a trade, typically a government ID, your Social Security number, proof of address, and a live selfie match.
This is the same level of verification you'd go through opening a brokerage account, not a Polymarket-specific hurdle. Federal law requires regulated exchanges to know who they're doing business with.
Is Trading on Polymarket the Same as Gambling?
Legally, no. Polymarket US is regulated as a derivatives exchange under the Commodity Exchange Act, the same framework that governs futures and options trading, not under state gambling statutes.
That distinction is exactly what the state-level legal fights are actually about: whether an event contract on a sports outcome is meaningfully different from a sportsbook bet, or just a differently labeled version of the same thing.
Read more about the Polymarket promo code and learn the ins and outs of how to bet on Polymarket.
Ready to Try Polymarket?
Now that you know what Polymarket is, how it works, and where it stands legally, getting started on Polymarket is just a matter of verifying your account and funding it.
New users can enter promo code ACTION, which allows them to Deposit $10, Get a $50 Trading Bonus!
Disclaimer: Prediction markets provide real-time probability estimates based on traded contracts. These prices reflect market sentiment and do not guarantee future outcomes. Trading event contracts involves risk, so make sure you understand the resolution criteria before taking a position.
What Is Polymarket, How Does It Work, and Is It Legal? FAQs
What is Polymarket in simple terms?
Polymarket US is a regulated exchange where you buy and sell shares tied to the outcome of real-world events, with share prices reflecting the market's current probability estimate.
How do you actually make a trade on Polymarket?
You fund your account through a linked bank account, pick a market, and place an order to buy shares in the outcome you expect. You can sell those shares at any time before the market resolves.
Is Polymarket legal in the United States right now?
Yes, through Polymarket US, which operates as a CFTC-regulated Designated Contract Market under QCX LLC.
Is Polymarket legal in every state?
Not universally. Federal approval covers Polymarket US nationally, but some states, most notably Nevada, have separately challenged its legality under state gambling law.
Do you need an SSN to use Polymarket US?
Yes. Polymarket US requires full identity verification, including a Social Security number, to comply with federal regulations.
Is Polymarket considered gambling under federal law?
No. It's regulated as a derivatives exchange under the Commodity Exchange Act, a different legal category than state gambling law, which is the core issue behind the ongoing state-level disputes.
