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Polymarket

Controversies

Controversies tied to this brand in public sources. A listing is not a finding of fault.

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  1. 2026

    Baltimore sues Kalshi and Polymarket over alleged illegal gambling

    Lawsuit filed

    The Mayor and City Council of Baltimore filed separate lawsuits against Kalshi and Polymarket on Thursday, accusing the prediction market platforms of operating as illegal gambling operators without required state licenses and of misleading customers about the legality of their platforms. Baltimore is seeking civil penalties, injunctive relief, restitution, disgorgement, and additional relief.

    Source excerpt

    • The lawsuits also claim that the prediction market companies misled customers about the legality of their platforms.
    • The Baltimore Mayor and City Council of Baltimore filed lawsuits against Kalshi and Polymarket on Thursday, accusing the platforms of acting as illegal gambling operators.
    • Baltimore is ultimately seeking civil penalties, injunctive relief, restitution, disgorgement, and additional relief as a resolution to Kalshi and Polymarket’s illegal operations.
    Source

  2. 2026

    CFTC investigates Polymarket’s compliance with 2022 settlement

    Investigation

    The Commodity Futures Trading Commission is investigating whether Polymarket violated a 2022 settlement that barred U.S. users from its offshore platform. The inquiry also concerns Polymarket’s location-detection controls and U.S. advertising. According to the source, the investigation’s start date was not provided. The report does not specify any findings, allegations beyond the compliance question, or outcomes of the inquiry.

    Source excerpt

    • The person familiar with the inquiry did not provide a start date for when the CFTC began investigating Polymarket.
    • The federal agency is inquiring into Polymarket controls that are meant to detect where customers are located, as well as the platform's advertising in the U.S., the person added.
    Source

  3. 2022

    CFTC orders Polymarket to pay $1.4 million

    Fine or penalty

    The CFTC ordered Polymarket to pay a $1.4 million fine to settle allegations that it offered illegal trading through event-based binary-options contracts. The article says Polymarket did not admit or deny wrongdoing in the settlement.

    Company response

    • Remediation — Polymarket

      In settling with the regulator, Polymarket will prematurely wind down three markets that do not comply with the Commodity Exchange Act (CEA) and refund participants.

    Source excerpt

    • The Washington DC-based Commodity Futures Trading Commission (CFTC) has ordered online betting platform Polymarket to pay a fine of $1.4m to settle allegations it offered illegal trading.
    • According to , Polymarket “didn’t admit or deny wrongdoing in the settlement,” nor did its holding company, Blockratize Inc., as yet respond to a request for comment.
    Source