Polymarket opens ‘beta test’ for re-entering US as it targets sportsbooks
Polymarket is attempting to re-enter the United States market, as it reportedly begins beta testing its operation. It has started this plan by allowing some users access, as well as matching trades.
The prediction market had originally left the US after it was fined by the Biden administration’s Commodities Futures Trading Commission (CFTC) for $ 1.4 million after being found to be operating without the necessary licensing. Like Kalshi, Polymarket also has Donald Trump Jr. on its advisory board. In July, under the Trump administration, the CFTC and Department of Justice closed their probes into the company.
Reported in Bloomberg, founder Shayne Coplan said:
“The US Exchange is actually live and operational and people are being onboarded. It’s effectively in a beta test.
“It’s the fastest anyone has ever gotten to market. Definitely a difficult task, but our team has been incredible and made that happen.”
Polymarket now owns QCX, which handles the derivatives exchange and clearinghouse side of the business, as it has CFTC approval.
Polymarket aims for the sportsbook market amid ‘beta test’
Polymarket will be keeping a keen eye on the sportsbook market. As we reported, Kalshi’s partnership with the NFL on FOX drove gamblers to spend as much as the entirety of Kalshi’s presidential election bets in just a week. The push by prediction markets into the sportsbook arena has raised concerns among Tribes and other operators. Because it is not classified as gambling, it falls outside many existing regulatory frameworks
Coplan said about going after sportsbooks:
“I don’t think anyone would argue that the sports book model is the optimal model.
“There’s a monopoly on pricing. You trade against the house every time and they can set whatever prices they want and to make matters worse, if you make any money, they can ban you.”
FanDuel has announced that it will be launching its own prediction markets. This would allow them into states where sports betting is outlawed.
ReadWrite has reached out to Polymarket for comment.
Featured image: Polymarket, Piotr Siedlecki
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