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IS Kalshi Legit: Legal Clarity for US Prediction-Market Traders

Live prediction markets priced by real-money order books. Trade on politics, crypto, sports and culture with on-chain settlement.

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Reviewed by: Sarah Whitfield · Markets Editor · Updated May 2026

Regulatory risk for prediction market traders — the honest picture

Prediction market regulation is evolving globally. The CFTC, SEC and FinCEN have each addressed different aspects of event-contract markets in recent years. For non-US users, local regulatory treatment varies by jurisdiction. This is a real risk sophisticated traders should factor in — not an emergency, but reason for ongoing attention.

KYC and identity verification

Polymarket requires verification above certain deposit and withdrawal thresholds. The exact policy depends on your region and current regulatory guidance. PolyGram inherits the same KYC requirements Polymarket imposes. Verification typically includes government ID, proof of address, and sometimes a live selfie.

US federal tax treatment

The IRS generally treats prediction-market winnings as taxable income. Exact classification depends on how your trading looks — investment-style, trading-style, or business-level activity. Track cost basis, dates, and payouts carefully. Consult a tax professional for material volumes.

State-level geo-restrictions

Certain markets aren’t accessible to residents of specific US states. Polymarket implements state-level geo-restrictions; PolyGram respects them. There is no interface-level workaround.

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Frequently asked questions

Is PolyGram legal in the United States?

Prediction markets are in a complex regulatory environment in the US. PolyGram is not regulated by the CFTC. Consult a qualified attorney about your specific situation. This is not legal advice.

Does PolyGram have a CFTC license?

PolyGram operates on the decentralized Polymarket protocol and does not hold a CFTC license. Kalshi is the primary CFTC-regulated prediction market exchange for US users.

How should I report PolyGram gains to the IRS?

Gains from prediction markets may be taxable as ordinary income or capital gains depending on your trading activity. Consult a CPA or tax attorney. This is not tax advice.

Does PolyGram issue 1099 forms?

PolyGram does not currently issue 1099 forms. Your trade history is exportable under Profile > Tax in IRS-8949 and 1099-DA compatible formats for your accountant.

Are US citizens allowed to use Polymarket?

US persons face regulatory restrictions on Polymarket's core platform. Please review Polymarket's current terms of service and consult legal counsel regarding your eligibility.

What AML/KYC does PolyGram perform?

PolyGram applies AML screening consistent with international standards. Enhanced due diligence may be required for large transactions or unusual activity patterns.

Is my USDC balance insured in the US?

USDC balances on Polygon are not covered by FDIC insurance or SIPC protection. Trade only what you can afford to lose. This is not financial advice.

How does PolyGram handle state-level gambling laws?

Prediction markets may be subject to state gambling laws, which vary significantly. We strongly recommend consulting a licensed attorney in your state. This is not legal advice.

What data does PolyGram collect about US users?

PolyGram stores your Telegram ID, trade history, and wallet addresses. We comply with applicable data protection laws and never sell personal data to third parties.

Can I delete my PolyGram account to remove my data?

Yes — request deletion via support. Your PolyGram profile will be removed, but on-chain trade records on Polygon are publicly permanent by blockchain design.

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⚠️ Prediction markets may be regulated in your jurisdiction. Winnings may be subject to tax. This information does not constitute legal advice.