Polymarket rolls out spending limits and self-exclusion tools as scrutiny of prediction markets grows

Polymarket has introduced a new set of user-protection and anti-addiction measures as calls for tighter oversight of prediction markets gain traction. The platform now lets users set deposit limits that cannot be reversed immediately, a feature aimed at helping control spending and potential losses. Users can also place themselves on temporary or permanent self-exclusion lists to suspend access to the platform. The company has also partnered with Birches Health, an online gambling addiction treatment provider, to offer mental health resources for users showing what it described as "compulsive financial trading behavior." Malea Otranto, Polymarket’s global head of safety, said the company will monitor how these tools are used and may adjust them based on their real-world effectiveness. The move comes as prediction markets in the United States face rising regulatory attention. These markets are classified as CFTC-regulated financial markets rather than sports betting platforms, which means they do not have to follow state-level consumer protection rules written for sports wagering operators. According to TickerTracker, sports markets and parlay trades accounted for more than 98% of trading volume on Polymarket’s U.S. platform this month. New York state has sued Polymarket in an effort to shut down its business, while the company has denied wrongdoing and filed a countersuit in federal court.