Polymarket Rolls Out Sportsbook-Style Consumer Safeguards

Polymarket has introduced a new package of consumer safeguards as the prediction market operator faces a legal challenge from New York over whether its U.S. platform can offer event contracts without a state gambling license.

The company announced Sept. 30 that it was adding voluntary deposit limits, self-exclusion and mental health resources for users experiencing compulsive trading behavior. It also launched a Trust & Safety Center covering user protections, market rules and content moderation.

“People should be able to set their own limits, step away on their own terms, and know what the rules are,” Malea Otranto, Polymarket’s global head of trust and safety, said in the announcement.

Deposit limits and voluntary breaks

As one of the top prediction market apps, U.S. users will be able to set daily, weekly or monthly deposit limits across all funding methods. Lowering a limit takes effect immediately, while increasing or removing one requires a cooling-off period.

Self-exclusion is available for periods ranging from 30 days to one year, or permanently. During an exclusion period, users cannot deposit or open positions. Polymarket says users can still close existing positions, allow them to settle and withdraw available funds.

The company has also partnered with Birches Health to provide mental health resources for users experiencing compulsive financial trading behavior. Birches says its services include online assessments, individualized recovery plans and ongoing treatment.

Polymarket is also adding educational materials designed to help users recognize potentially problematic behavior, including chasing losses and increasing the size or frequency of trades.

The company has not published participation rates or evidence showing whether the new controls reduce harmful trading. For now, their availability is measurable; their effectiveness is not.

Familiar tools, different oversight

The safeguards will look familiar to customers of the best sports betting sites.

Operators such as DraftKings offer deposit and wagering limits, cooling-off periods and self-exclusion. The regulatory framework, however, is different.

Polymarket US operates through QCX LLC, which the Commodity Futures Trading Commission designated as a contract market in July 2025. Users trade contracts tied to real-world events rather than placing traditional sportsbook wagers against an operator. On Polymarket US, contracts settle according to the outcome specified in the market.

That distinction sits at the center of the current legal fight.

New York challenges Polymarket

On Sept. 24, New York Attorney General Letitia James and Gov. Kathy Hochul sued Polymarket US, alleging that the platform is operating an unlicensed gambling business in the state. The state is seeking to stop the activity and obtain fines, forfeiture of alleged illegal gains, and restitution for users.

New York also alleges that Polymarket allows users ages 18 to 20 to participate, while state law requires customers to be at least 21 for mobile sports betting.

Polymarket responded the same day with its own federal lawsuit, arguing that federal commodities law gives the CFTC exclusive jurisdiction over its event contracts and preempts New York sports betting laws. The company called New York's position an “extraordinary assertion of state power squarely foreclosed by federal law.”

The two cases are now before U.S. District Judge Ronnie Abrams. A Sept. 30 order directed the parties to confer and submit a joint letter addressing whether to proceed with an initial status conference or seek a stay while related appeals are resolved. The order did not grant a stay or decide the underlying legality of Polymarket's operations.