Polymarket, a prominent political betting platform, has successfully raised $70 million through two funding rounds, as reported by Bloomberg. The latest round, led by Founders Fund, secured $45 million.
Funding Success
Joey Krug, partner at Founders Fund, addressed the Commodity Futures Trading Commission’s (CFTC) proposed bans on political betting, noting that opposition in the U.S. often stems from a puritanical view of gambling. Despite this, Polymarket saw a surge in activity, with over $170 million wagered on U.S. election events. Former President Donald Trump even shared Polymarket’s predictions about his potential return to the White House.
We’re pleased to confirm that we've successfully agreed to a settlement with the CFTC, & are excited to move forward & focus on the future of Polymarket.
As per the order, the 3 markets lasting past 1/14 that don't comply with the Act will be prematurely resolved. More soon
🔮— Polymarket (@Polymarket) January 3, 2022
Regulatory Challenges and CFTC Fine
Krug emphasized Polymarket’s strategic focus, stating, “In the short- to mid-term, targeting non-U.S. markets is beneficial for Polymarket. In the long run, enabling American participation would be advantageous.”
In early 2022, Polymarket was fined $1.4 million by the CFTC for unregistered over-the-counter binary options trading. The platform’s cooperation with regulators resulted in a reduced fine and a successful settlement of the issue.
Future Prospects
Polymarket’s ability to secure significant funding despite regulatory challenges highlights investor confidence in the burgeoning sector of political event betting, positioning the platform for future growth and innovation.
