Polymarket Gets House in Order with New User Protections

Polymarket aligned itself with state-regulated online sportsbooks more this week by introducing new responsible gambling tools.

The world’s biggest prediction market exchange has rolled enhanced user protection tools as it faces an onslaught of legal challenges and pushbacks.

In come responsible trading tools, voluntary self-exclusion, and daily deposit limits. Polymarket has also announced a Trust and Safety team across not only its U.S. platform, but global ones too.

The move follows Kalshi, who in May joined the National Council on Problem Gambling. Polymarket’s rival donated $2 million in investment to the NCPG.

Polymarket ‘Excited to Continue to Build Out’

In addition to tools normally found at online sportsbooks, Polymarket is also rolling out its Trust & Safety Center. It’s a centralized resource center allowing traders to find out how Polymarket safeguards customers and marketplaces.

Speaking about the new additions, Polymarket’s Global Head of Trust and Safety, Malea, Otranto said the company was “excited to continue to build out” from a platform of responsible gambling tools and help pages.

She added that “people should be able to set their own limits, step away on their own terms, and know what the rules are.”

Polymarket offers advice on how prediction markets are protected and shares ways the platform screens traders with previous bans. They also provide a path to get treatment for compulsive financial trading through a partnership with Birches Health.

What the Trust & Safety Hub Offers

• Articles on how prediction markets work
• Market integrity overview
• Prohibited-trader screening
• Access to problem gambling treatments
• Deposit limit tools
• Self-exclusion provision

Gloves Off in States vs. Prediction Market Battle

Prediction markets like Polymarket have faced an onslaught of attacks from state regulators over the past few months.

Multiple states have accused prediction markets of offering “illegal sports betting”, particularly where the state has an existing betting law.

New York is the latest state to take action against Polymarket for offering sports wagering, especially on college games.

Many states have issued cease-and-desist letters to prediction market platforms for operating without a gaming license.

The prediction markets say they are federally regulated as Designated Contract Markets (DCMs) and are therefore not covered by state rules. They have the backing of the Commodity Futures Trading Commission (CFTC), the federal regulator for predictions.

However, as court battles intensify, and various courts of appeal rule in favor of the states, prediction exchanges are moving to be more transparent.

House Committee Launches Probe

The issue of insider dealing at prediction markets isn’t going away, another area where exchanges are looking to clean up.

The House Committee on Oversight and Government Reform is expanding its probe into insider dealing at sites like Polymarket.

Several high-profile cases of suspicious insider trading (proven or otherwise) are staining the predictions industry. 2026 has already seen several cases of traders using inside knowledge to place bets on political events – and win.

Preparation for Supreme Court Showdown

Prediction markets’ move towards responsible gambling isn’t impressing everyone. Following Kalshi’s donation to the NCPG, some gambling commissions withdrew their support for the charity.

Despite new responsible gambling tools, Polymarket still accepts traders at 18. This compares to the 21-age limit found at U.S. online sportsbooks and prediction platforms like Novig.

Prediction markets are facing a reckoning in the U.S. Supreme Court. With states achieving wins in the appeals courts, it’s likely the highest court in the land will deliver the ultimate answer next year: just who regulates and taxes prediction exchanges. By improving their responsible gambling provisions, Polymarket may just be preparing for the inevitable.