Polymarket is preparing to take off in the United States after a prolonged absence that may end soon enough, perhaps imminently. The company received a go-ahead from the Commodity and Futures Trading Commission (CFTC) on Tuesday and is expected to announce plans for its return before long.
The licensing comes at a time of increased scrutiny and competition in the prediction markets segment.
Polymarket All Posed to Return in the US – Timeline Not Detailed
With rivals such as Kalshi trying to creep into sports events, with a fairly good track record, bar a few setbacks, mainstream gambling companies such as DraftKings and FanDuel are also exploring the opportunities presented by this emerging vertical.
The Bank of America has criticized the proliferation of what it described as a convergence of “speculative financing and entertainment,” arguing that it has contributed to American indebtedness.
Polymarket, too, now has a chance to make a return to the United States after it exited, having obtained the prerequisite licensing and allowing its users to trade through Futures Commission Merchants.
Polymarket recently received a $2-billion investment from the owner of the New York Stock Exchange, Intercontinental Exchange, catapulting its value and prompting others, including Kalshi, to secure funding on their own.
DraftKings and FanDuel have been expanding with their own products, and FanDuel Predicts, a standalone app by the operator, is moving along and is due to launch in December. The companies have even dropped their Nevada licensing (a state that is likely to continue pushing back against prediction markets) in order to pursue ventures in the vertical.
Prediction Markets Going to Get Bigger
Facing scrutiny over questionable due diligence and anti-money laundering, and having the Federal Bureau of Investigation involved the last time around, Polymarket has now seemingly fixed the issues that law enforcement and regulators had with it.
“As part of the amended order, Polymarket has developed enhanced surveillance systems, market supervision policies, clearing procedures, and part-16 regulatory reporting capabilities. Polymarket will implement additional rules, policies, and processes applicable to intermediated trading before official launch,” a statement detailing the licensing event clarified.