Polymarket US offers sports, political and cryptocurrency event contracts to U.S. retail traders, adding a federally designated marketplace while a pending Supreme Court petition puts state authority over sports trading in focus.
The legal question arises from New Jersey’s petition involving rival exchange Kalshi. The state wants the justices to decide whether federal derivatives law prevents states from enforcing gambling restrictions on sports contracts traded through registered exchanges. The Supreme Court has yet to grant review.
An Oct. 7 brief from Ohio, 38 other states and the District of Columbia supported New Jersey. The NFL filed its own supporting brief Oct. 8.
QCX LLC runs Polymarket US. The Commodity Futures Trading Commission (CFTC) designated the company as a contract market on July 9, 2025. KalshiEX LLC received its CFTC designation in November 2020.
Polymarket completed a $112 million purchase of QCEX on July 21, 2025. QCEX was the holding company for QCX and clearinghouse QC Clearing LLC. The U.S. exchange operates separately from Polymarket International.
The CFTC had previously imposed a $1.4 million penalty on Blockratize Inc. d/b/a Polymarket. Its Jan. 3, 2022, order also required the company to wind down markets the regulator found violated U.S. derivatives rules.
A trader can leave a position before the event is resolved at the available market price. If held to settlement, a typical contract pays $1 when its stated outcome occurs and nothing otherwise. Contract rules, fees and liquidity can affect the amount a trader receives.
Utah Attorney General Derek Brown filed a separate Oct. 20 lawsuit seeking to block five categories of Kalshi contracts for state residents. The complaint challenges contracts tied to sports, elections, politics, culture and “mentions.” Kalshi’s response to New Jersey’s Supreme Court petition is due Nov. 9.
