Key highlights:
- Polymarket is in early talks to raise $1 billion in funding
- The company has seen major growth after launching its U.S. exchange
- Rival Kalshi is ahead in U.S. trading volume as Polymarket looks to compete
According to a
It was also reported that Kalshi is exploring an IPO amid its rapid growth.
Experts also expect prediction markets to keep growing. Bank of America and Bernstein estimate the sector could see $240 billion in trading volume during 2026. This is a 370% increase from 2025. They added that the market could reach $1 trillion in annual trading volume by 2030.
Regulation still creates uncertainty
Prediction market platforms are still facing regulatory challenges in the U.S. Polymarket’s U.S. exchange operates through QCX LLC, a federally approved contract market under the CFTC.
But despite this approval, some U.S. states are asking questions on if prediction contracts should be seen as a financial product or gambling.
In fact, a court just lifted a prediction market ban in Minnesota that could have hurt Polymarket and other businesses if it stood.
Nevada regulators, for instance, filed legal action to block certain services in the state. While some are looking to ban them, some are introducing exorbitant fees.
North Carolina passed a law recognizing federally regulated prediction markets but implemented a 6% tax on trading fee revenue beginning in 2027. These legalities could affect how investors value the business in funding rounds.
Source:: Prediction Market Giant Polymarket Seeks $1B in Funding at $20B Valuation