There has been a big play in the prediction market arena with the news that Donald Trump Jr. has joined the board of Polymarket as an advisor.
The move followed a ‘multi-million dollar’ investment in the company by 1789 Capital, where Trump Jr. is a partner with a focus on new investment, capital raising and strategy.
It remains to be seen whether that will affect a similar advisory role that Trump Jr. took up with Kalshi at the start of this year.
Kalshi is the longest-standing prediction market platform in the US, having launched in July 2021 and presently serves all 50 states.
It expanded its reach in January of this year by offering markets on sports, a move which several states have tried to ban through the courts, claiming that it is effectively sports betting.
Is Polymarket Licensed In The US?
Polymarket is the world’s largest prediction markets platform and has been making a play for US users for several years.
Although the crypto betting site hasn’t divulged the full terms of the investment by 1789 Capital, a source told Reuters news agency that it was “in the double-digit millions of dollars”.
In 2022 Polymarket was fined $1.4 million by the Commodity Futures Trading Commission (CFTC) for operating in the US without proper authority.
In June this year it announced it was partnering with X, becoming official market partner for Elon Musk’s social media channel, and last month the firm acquired CFTC-licensed exchange and clearinghouse QCEX for $112 million with eyes firmly on the growing US market.
Polymarket and Kalshi have shared public words in the past which makes Trump Jr.’s position on both boards one to watch.
Shayne Coplan, Polymarket’s founder and CEO, has referred to Kalshi as a “copycat” platform.
That brought a dismissive reply from Kalshi co-founder and CEO Tarek Mansour, who said: “We’re squarely in the lead position with a very, very strong head start because of an unwavering commitment to build it legally, build it credibly in the US.
“And now other people are trying to sort of replicate the setup and do the same exact things that we’ve done over the last few years.”
Trump Jr. Says The US Needs Polymarket
In a press release announcing 1789 Capital’s investment, Trump Jr. stated that Polymarket should be available to all US users.
“Polymarket is the largest prediction market in the world, and the US needs access to this important platform,” he said.
“Polymarket cuts through media spin and so-called ‘expert’ opinion by letting people bet on what they actually believe will happen in the world.
“I am pleased that 1789 Capital is investing in Polymarket and am honored to join the company’s advisory board.
“I look forward to working with the team to advance its mission of bringing truth and transparency to everyone – including the US.”
Shayne Coplan, founder and CEO of Polymarket added: “This strategic investment marks a significant milestone for Polymarket.
“Our long-term partnership with 1789 Capital will help reinforce Polymarket’s leading position as a trusted source of free, transparent and accurate market information in the US and around the world.
“We are proud to formally welcome 1789 Capital as a strategic partner and Donald Trump Jr. to our advisory board as we continue building our platform to reflect real-world sentiment, in real time, for all to see.”
Jim Munro is a betting industry and gambling expert who has been a national newspaper journalist for over 30 years, predominantly at The Sunday Times and The Sun, where he wrote a weekly soccer betting column. Jim also worked on the launch of Virgin Bet with Gamesys and was subsequently head of editorial at LiveScore, the sports media and betting group.
