Polymarket has introduced new user protection measures, including deposit limits, voluntary self-exclusion and access to mental health resources, as prediction markets face growing regulatory scrutiny in the US.
The platform now allows users to set daily, weekly and monthly deposit limits. Reducing a limit takes effect immediately, while increasing or removing one requires a cooling-off period. Users can also exclude themselves from trading for 30 days, one year or permanently. Polymarket has added these measures to its Trust & Safety Center, which also provides information on platform rules and safeguards.
Platform Faces State-Level Challenges
The new measures come as US lawmakers and regulators continue to debate how prediction markets should operate alongside state gambling laws.
New York filed a lawsuit against Polymarket on September 24, alleging that the platform operates an unlicensed gambling business in the state. The New York Attorney General’s office argues that Polymarket’s event contracts fall within the state’s definition of gambling and that the company should obtain a state gambling licence.
New York has also taken legal action against rival prediction market operator Kalshi, highlighting the wider dispute over whether event contracts constitute financial products or gambling under state law.
Polymarket Expands Responsible Trading Tools
Polymarket said its new safeguards aim to give users greater control over their trading activity. The company has also added mental health resources for users experiencing compulsive trading behaviour and partnered with Birches Health, a provider of behavioural and process addiction treatment.
Malea Otranto, global head of Polymarket’s Trust and Safety Center, said the company wants users to have tools that allow them to set limits and step away from the platform when needed.
Prediction Markets Face Greater Scrutiny
Alongside consumer protection concerns, prediction markets have faced questions over market integrity and potentially suspicious trading activity.
Polymarket’s Trust & Safety Center allows users to report suspected market manipulation or other prohibited conduct. The platform says reports go to its Global Intelligence & Investigations Team for review.
For operators and suppliers entering the prediction market sector, the developments highlight the growing importance of responsible trading tools, market surveillance and regulatory compliance as the sector expands in the US.
