Polymarket Lands $2 Billion Investment from NYSE Owner Intercontinental Exchange

Prediction markets could also be in a precarious regulatory scenario, however that’s not stopping the businesses from attracting main monetary investments.

Polymarket announced today that Intercontinental Exchange (ICE), the proprietor of the New York Stock Exchange, is making a $2 billion strategic funding within the crypto-centric prediction market at a valuation of $9 billion.

“Alongside its funding, ICE will turn out to be a world distributor of Polymarket’s event-driven information, offering prospects with sentiment indicators on matters of market relevance,” the joint press release saying the deal says. “Additionally, ICE and Polymarket have additionally agreed to accomplice on future tokenization initiatives.”

The deal was first reported by the Wall Street Journal’s Lauren Thomas.

Timing of the deal

ICE’s funding comes as Polymarket readies its return to the US. Some business observers have deduced that the federal authorities’s shutdown is delaying the corporate’s re-entry.

Wrote InGame’s Daniel O’Boyle, “Polymarket won’t be able to supply its prediction markets within the U.S. till a authorities shutdown involves an finish if previous precedent is something to go by.”

The firm has not been legally in a position to function within the nation since January 2022, though it’s extensively accepted that US customers have nonetheless been capable of finding their means onto the platform.

Polymarket vs. Kalshi

As Polymarket chomps on the bit to return to the US, Kalshi – its main competitor – has been consuming up market share throughout the early weeks of soccer season.

In truth, we reported right here yesterday that Kalshi has surpassed Polymarket in weekly trading volume, regardless of the US being the one nation during which it’s stay.

In the week ending Sunday, Kalshi noticed a report $871.8 million in buying and selling quantity on its platform, round 80% from sports activities, in comparison with $411.6 million for Polymarket.

While a $185 million funding spherical in June led by Paradigm, a venture-capital agency specializing in crypto, valued Kalshi at $2 billion, a recent report mentioned the corporate is in talks for funding at a virtually $5 billion valuation.

Sports and the regulatory panorama

The Wall Street Journal’s Thomas selected an fascinating phrase when writing immediately that Intercontinental Exchange’s funding in Polymarket “might improve the betting platform’s credibility and help its efforts to re-establish a U.S. presence.”

Prediction markets are likely to keep away from terminology like “betting” and “playing” in entrance of regulators; in terms of advertising and marketing their merchandise to a sports-thirsty US viewers, they put such phrases front-and-center.

To most playing business observers, sports activities betting is exactly what Polymarket, Kalshi, and others are providing, albeit in a barely totally different from than conventional sportsbooks.

This dynamic muddies the authorized and regulatory outlook for prediction markets.

For now, they’ve the blessing of the Commodity Futures Trading Commission, however they’re coping with pushback from a vital mass of states and Native American tribes, which contend prediction markets are working as unlawful sportsbooks.

Kalshi scored early wins within the courtroom, however current rulings have chipped away on the firm’s authorized armor.

Prediction markets, in the meantime, are benefiting from the amenability of the Trump White House. Donald Trump Jr. joined Kalshi as a strategic advisor precisely every week earlier than his father’s inauguration, and whereas Brian Quintenz’s nomination as the top of the CFTC has been withdrawn, you’ll be able to wager the brand new nominee shall be simply as accommodating towards prediction markets.

Despite large funding portending a bullish outlook, lots are doubtful about the way forward for prediction markets, as authorized warmth is turned up and the potential of a Democratic administration in three years looms.

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