Polymarket, a prediction market platform, disclosed that its annualized revenue has surpassed $1.8 billion, according to statements made to CNBC on Tuesday. This represented significant growth from June, when the company had reported an annual revenue run rate exceeding $1 billion following the launch of its domestic exchange in May.
The company’s revenue expansion has been concentrated in the U.S. exchange, which operates as a distinct trading venue separate from its international decentralized finance platform. The domestic exchange processed more than $14.5 billion in notional volume during October, a substantial increase from the $4 billion recorded in June, according to data from analytics platform TickerTracker. This growth has been fueled by trading activity around major events, including the FIFA World Cup over the summer and the start of the NFL season in September. Combo event contracts, which function similarly to multi-leg parlays offered by sportsbooks, have become particularly popular, accounting for more than 70% of volume traded on the platform on Sunday.
Polymarket’s expansion has coincided with a fresh funding round valuing the company at $21 billion, with the company seeking to raise $1 billion in this round.
However, the company faces regulatory and political challenges ahead. The Commodity Futures Trading Commission is conducting a broad investigation into Polymarket, examining advertising practices and whether the company previously violated a settlement prohibiting U.S. residents from accessing its international exchange. Additionally, the company may encounter heightened scrutiny from Congress, partly due to the involvement of Donald Trump Jr., who serves as an advisor to Polymarket. The company has stated it welcomes regulatory oversight and intends to cooperate with lawmakers as they develop understanding of the prediction market industry.
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