Is Kalshi legit? What its CFTC status does and doesn't mean

Is Kalshi legit or a scam?

Kalshi is a regulated US exchange, not an offshore betting site. The CFTC designated KalshiEX LLC as a contract market on November 3, 2020 (announced November 4), and in August 2024 it registered Kalshi Klear LLC, Kalshi's affiliate, as a derivatives clearing organization. A designated contract market is the federal license for an exchange that lists futures, swaps or options.

The CFTC says regulated exchanges must pass a strict application process, face periodic examinations and follow core principles meant to stop manipulation and insider trading. It also says regulated exchanges and brokers do not take a side of your trade. On Kalshi you trade against other traders, not against the company.

Those rules get enforced. In February 2026 the CFTC described two insider trading cases on Kalshi: a political candidate who traded on his own race, and a YouTube channel editor who traded on the channel's videos. Kalshi fined both and suspended them for five and two years.

What does CFTC regulation not cover?

A CFTC designation is a license to run an exchange. It does not endorse any trade, and several risks stay with you:

• Losses are yours. Kalshi's risk notice says members can lose what they paid to enter a trade, including fees.
• Your balance is not insured. Neither Kalshi nor Polymarket US describes FDIC or SIPC coverage.
• State law is unsettled. The CFTC says federally regulated prediction markets can operate in all 50 states. Several states disagree, and courts have reached different answers.
• A bad trade is not a complaint. The CFTC complaint page takes tips about rule breaking and runs a reparations program for some disputes with futures firms, but a position that lost money is not a violation.
• Unregistered sites get none of this. The CFTC warns that unregistered or offshore platforms fall outside its jurisdiction and may offer little or no protection.

Is Kalshi safe? How Kalshi and Polymarket US hold your money

Kalshi says all customer funds for trading are held in segregated customer accounts with Kalshi Klear, which it describes as a futures commission merchant and derivatives clearing organization overseen by the CFTC.

Polymarket US says your funds are kept in a dedicated customer account, separate from its operating funds, and that it cannot access or use them. Its clearinghouse, QC Clearing LLC, registered with the CFTC on December 16, 2024. In a May 2026 CFTC filing, Polymarket Clearing said that where it clears positions for customers, the funds backing them will be held in segregated accounts, and that the US Bankruptcy Code and the CFTC's Part 190 rules would govern if it or one of its clearing members failed.

Segregation keeps a company from spending your deposit. It does nothing about a losing trade, and it is not deposit insurance.

Your login matters too. Polymarket US warns that if you lose your credentials or someone else gets them, you can lose access to your funds.

Is Kalshi legal in every state?

Federal and state law point in different directions. The CFTC's position is that federally regulated prediction markets can operate in all 50 states. Several states say sports contracts are unlicensed gambling. Federal appeals courts have split: the Third Circuit sided with Kalshi against New Jersey in April 2026, and the Ninth Circuit ruled against Kalshi in its Nevada case in August 2026.

These are the official actions we confirmed as of October 12, 2026. They change often, so check the app before you deposit.

How does Polymarket US compare on safety?

On regulation, Polymarket US looks like Kalshi. It is run by QCX LLC, which the CFTC lists as a designated contract market since July 9, 2025, and it trades in US dollars after an identity check. The international polymarket.com is a different product that blocks US trading, and the CFTC fined its operator $1.4 million in 2022.

The main differences are state cases and age. Nevada's attorney general says a judge will bar some of its contracts there, Wisconsin, Kentucky and New York have sued, and you must be 18 and the age of majority in your state. Is Polymarket legit has the full record, and Kalshi vs Polymarket compares fees and signup terms.

What can still go wrong on Kalshi or Polymarket US?

A legitimate exchange can still cost you money. These are the risks that stay with you:

• You can lose the whole stake. A contract that resolves against you pays nothing.
• Fees come out whether you win or lose. Kalshi's general taker fee is 0.07 × contracts × price × (1 − price), rounded up, which is $1.75 on 100 contracts at 50 cents. Polymarket US charges $1.74 on the same trade. Kalshi can charge up to 2% on card deposits. The Kalshi fee calculator runs the formula for any price.
• Signup credits are not cash. Kalshi's referral FAQ says rewards may come as trading credits with withdrawal restrictions, some only become withdrawable after you trade the credited amount, and unused credits can expire. Polymarket US says promo credits can never be withdrawn; your own cash is used first, and only the balance above the credit can be withdrawn.
• Markets can disappear in your state. Court orders in Washington and Michigan removed whole categories in 2026.
• Insider rules apply to you. Trading on confidential information, or on an event you can influence, breaks exchange rules and can bring fines and bans.
• Winnings and credits can be taxable. Kalshi issues a 1099-MISC for credits and rewards when IRS reporting thresholds are met. Ask a tax professional how your results are treated.
• If trading stops feeling like a choice, see responsible gaming resources.

How to check a prediction market app is legit

The CFTC's customer guidance comes down to six checks:

• Find the exchange in CFTC records. KalshiEX LLC and QCX LLC (Polymarket US) both appear as designated contract markets.
• If the app is a broker that passes your order to an exchange, as Robinhood is, look the firm up in NFA BASIC.
• Use the exchange's official website or app, not a link from a message or an ad.
• Read the contract rules: what decides the outcome, which source is used and when it settles.
• Check what is offered in your state, since court orders have removed some contracts in some states.
• Only trade money you can afford to lose, and be wary of anyone promising big payoffs.

Where to complain about Kalshi or Polymarket US

Start with the company and keep records: dates, order or reference IDs, screenshots. The CFTC's prediction markets page says customers can complain to their broker, the exchange, the National Futures Association and the CFTC.

• Kalshi: in-app chat (menu, Get help, Chat with support). Kalshi offers email only if you cannot use chat, and no phone or text support.
• Polymarket US: in-app chat in your account settings, or support@polymarket.us.
• CFTC: file a complaint or tip at cftc.gov/complaint or call 866-366-2382.
• Your state attorney general: the National Association of Attorneys General does not take individual complaints, but its directory links to each state's consumer protection office.

Where doddo fits

doddo is not a prediction market. It does not trade, hold money or ask for your Kalshi or Polymarket password. Its Kalshi and Polymarket US pages track the published signup-credit terms with review dates, and the prediction markets hub has the rest. doddo is web only, and new accounts are on a waitlist right now. Trading Kalshi contracts through Robinhood costs more in fees; Kalshi vs Robinhood shows by how much.