Is Polymarket Legal in California

Updated: August 28, 2026 at 2:33 pm EDT

As of August 2026, yes, Polymarket is legal in California. The prediction market platform that allows users to buy and sell event contracts is legal in California and over 40 other states, even those like California that have not legalized sports betting. Polymarket is able to operate in so many states because of the Commodity Exchange Act, which made the Commodity Futures Trading Commission (CFTC) the regulatory authority over the buying and selling of event contracts.

New users in California can use the Polymarket promo code DIME to secure a $20 bonus after making a $10 deposit.

What is Polymarket? How do Prediction Markets Work?

Polymarket is a Designated Contract Market (DCM) with federal oversight and regulation from the CFTC. It operates as a prediction markets platform where users buy and sell event contracts on a specific outcome in a peer-to-peer exchange. Unlike a sportsbook that requires the state to legalize sports betting and issue the company a gaming license, Polymarket and other prediction markets are federally legal, and states would need to pass laws to block access to these platforms.

On Polymarket, traders purchase an event contract at a price that correlates with the public’s sentiment on that outcome occurring, where contracts will range from $0.01 to $0.99. When a user buys a contract at $0.40, that means the market sees that outcome as having a 40% implied win probability. If the user has a contract on the correct side of the outcome, they will be returned $1.00 for every contract that they purchased. In this instance, they would get their $0.40 back, along with a net gain of $0.60. Depending on the specific market the users were trading on, there could be a 0-7% fee taken from the earnings.

How is Polymarket Legal in California?

Polymarket is a financial derivative exchange that is regulated by the CFTC, which has exclusive federal jurisdiction over event contracts and preempts a state’s laws on gambling and sports betting. So while California has blocked attempts in the past to legalize sports betting, it does not currently have the authority to restrict the use of prediction markets in the state.

Some may recall Polymarket being blocked from operating in the US in 2022 as a result of a settlement with the CFTC. However, on July 21, 2025, Polymarket acquired QCX LLC and QC Clearing LLC, collectively known as QCEX, which is a CFTC-licensed derivatives exchange. This acquisition reopened the doors to the US for Polymarket, which officially launched its US-based app in November 2025.

While Polymarket is currently a legal California prediction market platform, that does not mean it is guaranteed to stay in its current form forever. California has not directly sued to block prediction markets from operating in California like Arizona, Connecticut, Illinois, Kentucky, Minnesota, New Mexico, New York, Rhode Island, and Wisconsin have; however, three California tribes have tried to sue Kalshi and Robinhood for violating the Indian Gaming Regulatory Act.

California State Attorney General Rob Bonta is one of the 44 state attorneys general in a coalition challenging the CFTC’s authority to regulate sports prediction markets in their states, which they see as a form of sports betting. This does not spell the end of California prediction markets, but users should be aware that the continued legality of all prediction market categories in the state could change.

It is a simple process to sign up in California using the Polymarket promo code DIME to unlock a $20 bonus after completing $10 in trades. Below is a step-by-step walkthrough on how to claim the Polymarket welcome offer:

Activate the Polymarket Promo Code – DIME: Using the link here, download the Polymarket app from either the Apple App Store or Google Play and claim the sign-up bonus. At the sign-up page, you can enter the Polymarket promo code: DIME to ensure you will secure the bonus. It is important to note that Polymarket does not have a US website, so while you can visit that website, it is not available to US residents, and you will not be able to register an account there.
Complete Registration: Fill in the required fields with your full name, Social Security number, email address, phone number, and date of birth, along with uploading a photo ID. Users will have to verify their identity with a selfie to finalize their account.
Make a Deposit: Make a deposit of at least $10 to your account from one of Polymarket’s secure payment methods.
Complete $10 in Trades: To unlock the $20 Polymarket sign-up bonus, you need to complete at least $10 in trades on the prediction market app.
Claim $20 Bonus: Once $10 in event contracts have been purchased, you will unlock the $20 welcome offer that can be used on your next trades.

What Market Categories Are Legal to Trade on Polymarket in California?

polymarket california sports prediction markets

Polymarket has some of the most comprehensive event contract offerings among all prediction market platforms. Californians can trade on a diverse collection of categories including Sports, Politics, Crypto, Weather, Technology, Economy, and Culture.

Sports prediction markets are among the most popular options on Polymarket in California, as they are a legal alternative to sports betting, which is still illegal in the state. Users can find markets for all of their favorite teams from the NFL, NBA, NHL, MLB, and even college football teams. Along with being able to trade on the outcomes of individual games, traders can buy event contracts on futures markets for the Dodgers to win the World Series or whether the Los Angeles Rams’ Myles Garrett will be named the Pro Football Defensive Player of the Year.

Politics is another trending California prediction market category that has much of the nation’s attention. Between the California Governor election, Los Angeles Mayoral race, and high-profile bills on the midterm ballot, there has been no shortage of interest or liquidity in these prediction markets. While the markets for governor have calmed down now that the primaries have passed, Polymarket shows that it is still a tight race between Karen Bass and Nithya Raman to be Los Angeles next mayor. Traders are also heavily weighing in on whether or not Prop 40, a Billionaire Wealth Tax Referendum, will pass in November, with the public giving it just a 33% implied win probability.

Polymarket California FAQs

Is Polymarket legal in California in 2026?

Yes, Polymarket is legal in California. Polymarket is a federally regulated DCM and is able to legally operate in over 40 states. With the CFTC as its governing body, Polymarket acts as a derivative exchange where users buy and sell event contracts on a range of outcomes. While sports betting remains illegal in California, Polymarket and its peer-to-peer exchange are a legal alternative for California sports fans interested in trading on a game’s outcome.

How is Polymarket regulated?

Polymarket is regulated by the Commodity Futures Trading Commission (CFTC), which certified the platform as a Designated Contract Market (DCM). The CFTC has full authority over all prediction market platforms and monitors them for market manipulation, fraud, and insider trading.

What is the minimum age to use Polymarket in California?

Polymarket requires all users in California and all other states to be at least 18 years old to register an account or trade on the platform.

New users in California can use the Polymarket promo code DIME here to secure a $20 bonus after completing $10 in trades.

Can I trade on sports on Polymarket in California?

Yes, traders in California can trade on sports prediction markets on Polymarket. While the state has not legalized sports betting, trades on Polymarket are considered financial swaps, which are legal and regulated by the CFTC, rather than the California Gambling Control Commission. Some states and prediction market platforms have restricted access to sports markets; however, California has not enacted any laws to block these markets.

What prediction markets can I trade on Polymarket in California?

California residents can trade on Culture, Crypto, Economy, Politics, Sports, Technology, and Weather on Polymarket. Users can find markets for all major sporting events, elections, IPOs, weather events, and so much more on this prediction market platform in California.

Does Polymarket have a website?

Polymarket does have a website; however, that is only accessible to those who reside outside of the US. US residents are limited to the Polymarket US app, which offers different markets and has a different market volume than those found on the Polymarket website. US users will not be able to sign up for an account or access their existing account via the website.

Do I have to pay California state tax on winnings from Polymarket?

Yes, you must report all winnings from Polymarket when filing California state taxes, as well as on your federal taxes. Winnings from Polymarket are subject to the capital gains tax, unlike winnings from a sportsbook, which are seen as gambling income and filed differently.

Craig Dudek

Creative Manager and Writer at Sportradar. Craig has previously worked as a camera operator and video director in radio and television, as well as a content coordinator in the non-profit sector.

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