Prediction market platform Polymarket is reportedly in talks to raise $400 million at a $15 billion valuation, according to a report citing people familiar with the matter. This potential raise follows a $600 million investment from Intercontinental Exchange (ICE) in March and reflects surging institutional interest in the sector. The space now records over $10 billion in monthly trading volume but faces ongoing regulatory challenges, including a court battle involving competitor Kalshi.
Polymarket is reportedly in discussions to raise $400 million in fresh capital. The funding round would value the prediction market platform at $15 billion.
This potential raise adds to significant institutional investment flowing into prediction markets. Intercontinental Exchange (ICE), parent of the New York Stock Exchange, invested $600 million into Polymarket in late March.
Competitor platform Kalshi was valued at approximately $22 billion in its last funding round. Polymarket is reportedly looking to add strategic investors beyond ICE in a round that could total $1 billion.
Prediction markets have boomed since the 2024 U.S. election. The sector now consistently records over $10 billion in monthly trading volume.
Markets now cover sports, political elections, financial results, and cultural events. With that rise has come surging institutional interest from some of Wall Street’s biggest players.
Nasdaq’s MRX options exchange filed to offer cash-settled, binary-style contracts in early March. Cboe Global Markets is also launching a prediction market-style offering.
CME Group partnered with gambling company FanDuel to enable bets on non-financial markets. Last week, Charles Schwab and Citadel Securities said they are weighing a move into prediction markets.
Despite the activity, prediction markets face regulatory scrutiny. Kalshi and others have faced widespread insider trading and market manipulation allegations.
Kalshi is currently engaged in a court battle with the Nevada Gaming Control Board. The state regulator argues that Kalshi’s contracts facilitate unlicensed gambling.
Coinbase chief legal officer Paul Grewal has predicted the case could reach the U.S. Supreme Court. Such a ruling could create precedent for the regulatory treatment of prediction markets.
