As calls for regulation of prediction markets intensify, Polymarket has launched voluntary deposit limits, self-exclusion, and mental health referrals. The tools are designed according to the common gambling industry principle of "tightening takes immediate effect, loosening requires a cooling-off period."

U.S. users can set daily, weekly, or monthly deposit limits across all funding channels. Reductions take immediate effect, while increases or cancellations require a mandatory cooling-off period. Traders can remove themselves from the platform for 30 days, one year, or permanently. Malea Otranto, Global Trust and Safety Lead, stated that this is a floor, not a ceiling, and the company will track usage and adjust based on effectiveness.

The platform has partnered with Birches Health to provide mental health resources for users exhibiting compulsive financial trading behaviors. The agency offers remote assessments, personalized plans, and ongoing treatment in all 50 states, with access integrated into the product and customer service pathways, along with a four-question self-assessment guide. The press release did not specify who would bear the costs. The company also launched a Trust and Safety Center, summarizing user protections, market integrity, and community rules, covering comments, chats, teams, homepages, and Discord.

Prediction markets in the U.S. are classified as financial markets regulated by the Commodity Futures Trading Commission (CFTC), and do not automatically apply state consumer protections, tax burdens, and mandatory gambling addiction clauses for sports betting. TickerTracker data shows that this month, sports markets and parlays accounted for over 98% of Polymarket's trading volume in the U.S. New York State has sued QCX, which operates Polymarket US, alleging unlicensed operations and acceptance of users aged 18 to 20, seeking to shut it down, recover earnings, impose triple penalties, and a maximum of $100,000 per unauthorized sports bet. The company denies wrongdoing and has counter-sued in the Southern District Federal Court, claiming that the Commodity Exchange Act has exclusive jurisdiction over designated contract markets.

The U.S. version is set to launch in December 2025 through the acquisition of the licensed entity QCX, which received designated contract market status on July 9, 2025, and will self-certify financial, election, and sports event contracts starting September 30, 2025. Chief Legal Officer Neal Kumar stated that the company has over 350 employees in New York and will continue operations. The state emphasizes that licensed sports betting must pay taxes to the education fund, with projected mobile sports betting wagers in New York for the 2025-2026 fiscal year at approximately $26.16 billion, and operator gross revenue around $2.6 billion, contributing about $1.33 billion to education.

Funds remain in the event contract accounts, and limits only restrict the speed of new deposits, not constituting a loss limit or position limit. Buyers are users who wish to continue engaging in sports and parlays under the CFTC framework, while sellers are licensed bookmakers required by state attorneys general to pay taxes under gambling licenses. The events are driven by compliance demonstrations following the lawsuits. Beneficiaries are prediction platforms that can utilize federal preemption against state laws, while pressured parties are state regulators circumvented by tax and mandatory gambling addiction systems, as well as the narrative that 98% of transactions are treated as financial markets. The international site also launched up to 20x perpetual contracts in licensed regions this month, which are not included in U.S. designated market rules.

Source: Public Information