Is Polymarket legal in the UK? We explain the regulatory status, HMRC tax obligations, and what UK traders need to know before participating.
Short answer: Polymarket is accessible to UK users with no active geo-block, and there is no explicit UK prohibition on participating in foreign prediction markets. However, it operates in a regulatory grey zone without UKGC licensing. Profits may be taxable.
Polymarket is not licensed by the UK Gambling Commission (UKGC). It is a US-founded, blockchain-based protocol that operates globally without national licences. This means:
UK gambling law primarily targets operators, not consumers. The Gambling Act 2005 makes it an offence to provide unlicensed gambling services to UK residents, but does not explicitly criminalise consumers for participating in foreign, unlicensed platforms.
There are no known cases of UK individuals being prosecuted for using prediction markets like Polymarket. The practical risk to individual users appears very low, but this does not mean the activity is definitively legal.
⚠️ This is not legal advice. The legal landscape can change. If you have specific concerns, consult a solicitor specialising in gambling or financial services law.
The tax treatment of Polymarket profits depends on your circumstances:
If HMRC classifies your Polymarket activity as gambling, winnings are generally not subject to income tax or capital gains tax for individual consumers under current UK law. This is the most favourable outcome.
If you trade frequently, systematically, and with a profit motive, HMRC may classify the activity as a trade. In this case, profits are subject to income tax at your marginal rate. You can deduct trading costs.
If USDC is treated as a cryptoasset, buying and selling it (including trading on Polymarket) could create taxable disposal events for CGT purposes. The annual CGT allowance (£3,000 for 2024/25) applies.
Regardless of how you're taxed, keep records of:
HMRC expects you to be able to substantiate any position you take in your tax return.
Start trading on PolyGram →Live data from Polymarket · updated hourly