In this guide
Key takeaway: Polymarket operates legally across most territories, though it occupies uncertain regulatory territory in numerous jurisdictions. American users cannot participate. Verify compliance with applicable gambling and financial regulations in your region before engaging.
Is Polymarket legal? The response varies considerably based on your location. Because Polymarket functions as a decentralised blockchain-based protocol, no single regulatory authority oversees it — yet national legislation still applies to participants regardless.
United States — Blocked
American citizens and residents cannot use Polymarket. Following a $1.4 million CFTC settlement in 2022 regarding the provision of unregistered event derivatives, Polymarket exited the American market and implements geographic blocking for US-based connections. Circumventing this restriction through VPN technology breaches Polymarket's user agreement.
United Kingdom — Grey zone
Britain's Gambling Commission has neither formally authorised nor prohibited platforms such as Polymarket. The platform remains freely accessible to UK participants, though regulatory safeguards are absent. Tax authorities expect users to report earnings in accordance with HMRC requirements.
Germany — Grey zone
The Glücksspielstaatsvertrag (GlüStV 2021) establishes the framework for internet gambling regulation in Germany. Prediction markets occupy an uncertain position within this legislation — they are neither formally licensed nor expressly prohibited. German residents can access Polymarket without impediment, though potential legal exposure remains. Our comprehensive German legal guide provides additional detail.
Canada — Accessible
Canada does not impose a blanket federal restriction preventing consumer participation in prediction markets. Gambling frameworks differ across provinces, yet Polymarket remains broadly available and actively utilised by Canadian market participants.
Australia — Grey zone
The Interactive Gambling Act concentrates its enforcement focus on platform operators rather than individual users. Australian residents utilise Polymarket with comparatively minimal legal exposure, though the regulatory framework remains incompletely defined.
⚠️ 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, trading income must be reported to tax authorities. The UK typically applies Capital Gains Tax to such earnings. Germany assesses income tax on comparable transactions. Maintain comprehensive documentation of all trading activity for compliance purposes.
PolyGram supplies transaction history export functionality to facilitate tax documentation. Start trading on PolyGram →