Polymarket Revenue Tops $1.8 Billion as CFTC Probe Widens
The prediction market's U.S. arm drove a sharp volume increase in October, coinciding with a new $1 billion fundraising round.
By Justin Barnes ·
Prediction markets have moved from niche trading venues to major financial contenders, a shift now visible in the latest earnings data from industry leaders.
Polymarket told CNBC on Monday that its annualized revenue has climbed past $1.8 billion. This figure marks a steep increase from the data the company disclosed in June, when it reported an annual revenue run rate exceeding $1 billion. That earlier update followed the May launch of the platform's dedicated domestic exchange.
The growth is driven primarily by the company's U.S. exchange, which operates separately from its decentralized finance platform serving international users. According to analytics firm TickerTracker, the domestic venue processed more than $14.5 billion in notional volume during October. This represents a sharp jump from the $4 billion recorded in June.
High-profile sporting events fueled the trading spike. The FIFA World Cup held over the summer and the start of the National Football League season in September drew heavy participation. Combo event contracts, which function like multi-leg parlays, also saw a surge in popularity. These contracts accounted for more than 70 percent of the volume traded on the platform on Sunday.
The revenue expansion arrives as Polymarket begins a new funding round seeking $1 billion. The round would value the company at $21 billion, a figure that signals investor confidence in its ability to capture a larger share of the prediction market.
Regulatory scrutiny accompanies the financial growth. The Commodity Futures Trading Commission is conducting a broad investigation into Polymarket's operations. Regulators are examining the company's advertising practices and reviewing whether it violated a prior settlement agreement that restricted U.S. residents from accessing its international exchange.
Political connections have added to the oversight. Donald Trump Jr., son of President Donald Trump, serves as an advisor to the company, a role that has drawn attention from the Democratic-controlled Congress. A spokesperson for Polymarket told CNBC that the company welcomes the scrutiny as legislators work to understand the expanding sector. The firm aims to engage with regulatory bodies to ensure clarity and compliance.
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