Polymarket to return to U.S. after acquisition
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A Polymarket advertisement in Brooklyn during the 2024 presidential election campaign. Photo: Michael Nagle/Bloomberg via Getty Images
Polymarket is poised to legally return to the U.S. as prediction markets become an increasingly popular place for Americans to chase riches based on future outcomes.
Why it matters: Polymarket has technically been blocked for Americans, but an unknown number of users have found ways to use the platform.
Driving the news: The crypto-based events market announced Monday that it expects to provide trading access to Americans after acquiring derivatives exchange QCX for $112 million.
- QCX comes with a coveted license from the Commodity Futures Trading Commission (CFTC), allowing it to legally provide markets in the U.S.
- "The transaction marks a significant step toward expanding access to Polymarket's category-defining platform in the United States, enabling more users than ever to trade prediction market contracts with regulatory clarity and confidence," Polymarket said in a statement.
The big picture: Polymarket's popularity surged in 2024 as a place for traders to bet on the U.S. presidential election and other campaigns, but it hasn't been allowed to operate here for several years.
- One of its biggest competitors, Kalshi, is CFTC regulated and is legal for American users, though it's facing a legal battle over its right to offer sports event contracts.
Context: Polymarket received notice this month that the DOJ and CFTC "had both closed their investigations" into the company after "examining if Polymarket continued to allow US-based traders onto its platform despite a 2022 settlement with the CFTC in which it promised to block them because it wasn't registered," Bloomberg reported.
What they're saying: "Now, with the acquisition of QCEX, we are laying the foundation to bring Polymarket home — re-entering the US as a fully regulated and compliant platform that will allow Americans to trade their opinions," Polymarket CEO Shayne Coplan said Monday in a statement.
- That'll take place in the "near future," according to the company.
What to watch: Whether Polymarket becomes a force in U.S. sports betting, posing a threat to the traditional sportsbooks.
