The U.S. Department of Justice (DOJ) and Commodity Futures Trading Commission (CFTC) have formally ended their investigations into prediction markets platform Polymarket.
Bloomberg reported that “The predictions exchange received formal notice earlier this month from the US Justice Department and Commodity Futures Trading Commission that the probes had ended, according to a person with direct knowledge of the matter, who asked not to be identified discussing the confidential inquiries.”
Polymarket is unlicensed in the US and was previously fined $1.4 million by the CFTC and ordered to close all accounts of US users. The investigations centred around Polymarket accepting wagers from US users in last year’s Presidential race.
Under the Trump administration, the CFTC has softened its stance on the expansion of prediction markets into political betting and withdrew a legal challenge to Kalshi’s markets.
Trump’s advocacy of cryptocurrencies may also have led to the end of the investigation, which was initiated under Biden. Polymarket operates as a crypto betting site, allowing users to remain anonymous, which makes tracking the location of accounts difficult.
Raid On Polymarket CEO Failed To Deliver Evidence
In November last year, the FBI raided Polymarket CEO Shayne Coplan’s home in an attempt to gather evidence that the site was continuing to accept US users. Officers seized devices, but did not arrest Coplan.
In response to the raid, Coplan commented, “It’s discouraging that the current administration would seek a last-ditch effort to go after companies they deem to be associated with political opponents.”
“We are deeply committed to being non-partisan, and today is no different, but the incumbents should do some self-reflecting and recognize that taking a more pro-business, pro-startup approach may be what would have changed their fate this election.”
The company claimed that the raid was motivated by the Biden administration for having a market that accurately called Trump the winner of the election.
“This is obvious political retribution by the outgoing administration against Polymarket for providing a market that correctly called the 2024 presidential election,” a Polymarket spokesperson said.
Polymarket Continues To Push Political Markets
Despite the investigation, Polymarket has continued to offer its political markets. The spokesperson continued by stating, “Polymarket is a fully transparent prediction market that helps everyday people better understand the events that matter most to them, including elections.”
The site continues to offer a range of political markets, including several markets predicting military action in the Middle East. Suspicions were raised last month that military insiders may be participating in the markets after a series of successful wagers on military action by Israel.
The company also partnered with Elon Musk and X last month to expand its reach. A recent round of funding was backed by Peter Thiel, a co-founder of PayPal, along with Musk. Thiel invested $180 million in the company, putting its value at over $1 billion.
The decision of the DOJ and CFTC to end their investigation into Polymarket gives further license for the company, and other prediction market sites such as Kalshi, to continue pushing the boundaries of what is acceptable on the platforms.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.
