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- A prominent prediction market platform recently rolled out new consumer safety tools, including self-exclusion options and deposit caps.
- These safeguards arrive amid mounting legal pressure from state regulators questioning whether event-contract platforms should follow traditional gambling rules.
Polymarket has launched new consumer protection tools, including deposit limits, voluntary self-exclusion, and a new Trust & Safety Center, as the prediction market faces growing pressure from lawmakers and regulators.
The rollout matters because prediction markets are drawing wider scrutiny in the U.S., with lawmakers in 44 states seeking changes to the current regulatory framework and New York pursuing litigation against both Polymarket and rival Kalshi. The new features put Polymarket more squarely into the responsible-gambling conversation even as it argues its event contracts fall under federal commodities oversight.
New tools let users cap deposits and block their own access
According to the company, users can now set deposit limits on a daily, weekly, or monthly basis. If a user lowers a limit, the change takes effect immediately. If a user wants to raise or remove a limit, that change is subject to a cooling-off period.
Polymarket is also offering voluntary self-exclusion periods of 30 days, one year, or lifetime. In addition, the company said it is providing access to mental health resources and launching a Trust & Safety Center designed to explain platform rules and user safeguards.
Malea Otranto said in a news release, “People should be able to set their own limits, step away on their own terms, and know what the rules are.”
She added that the launch is “the floor, not the ceiling,” signaling that Polymarket may add more safeguards over time.
Rollout comes as prediction markets face legal and political scrutiny
The safeguards arrive as Polymarket and other prediction market operators face questions from regulators and lawmakers over whether their products should be treated more like gambling.
The KHOU report said New York has sued Polymarket, accusing it of sidestepping the state’s gambling regulations. Polymarket has responded with a federal lawsuit arguing that the Commodity Futures Trading Commission — not New York — has authority over its event contracts. New York has also sued Kalshi over alleged violations of state gambling law.
The broader sector has also faced integrity concerns. Polymarket and Kalshi have both been scrutinized over insider trading issues, and in April, a soldier was charged with using classified information to win more than $400,000 by correctly predicting the date of Nicolás Maduro’s capture on Polymarket. That same month, the Senate approved a bipartisan resolution aimed at preventing its own members from using prediction markets.
What comes next is likely to be shaped by both court fights and legislative efforts. For now, the most immediate change for Polymarket users is that the new deposit-limit and self-exclusion tools are now available.
Source: As reported by khou.com.
