Polymarket Recruits Internal Traders Due to US Return
Polymarket is building a dedicated internal trading unit to support its re-entry into the United States. The company is actively recruiting professional sports bettors and market makers to staff this new division. This team will execute trades directly against customers on the platform. The primary goal is to guarantee liquidity, ensuring users always have a counterparty for their wagers.
Previously, Polymarket positioned itself solely as a neutral exchange that connected buyers with sellers. By establishing an in-house trading desk, the company steps into a role similar to a traditional sportsbook.
This structure creates a scenario where the platform could potentially profit when its users lose. Similar models used by competitors like Kalshi have triggered class-action lawsuits alleging that internal trading desks create an inherent conflict of interest.
The Regulatory Pathway
The push to hire internal traders aligns with a broader strategy to operate as a fully regulated entity. Polymarket has been barred from the US market since a 2022 settlement with the Commodity Futures Trading Commission (CFTC).
To resolve this, the company recently acquired QCEX, a licensed exchange and clearinghouse, for $112 million. This acquisition provides the necessary federal designations to offer derivatives contracts legally to American participants.
A “soft launch” is currently underway for a waitlisted group of US users. The initial offering focuses heavily on sports markets. Management plans to expand into other categories later.
The strategy relies on aggressive pricing to disrupt incumbent operators. Polymarket intends to charge transaction fees as low as 0.01%, positioning itself as a low-cost alternative to traditional sportsbooks, which CEO Shayne Coplan has publicly criticized.
Financial Backing and Industry Alliances
Institutional investors have poured capital into the company ahead of this expansion. The Intercontinental Exchange, which owns the New York Stock Exchange, led a recent funding round. This investment pushed Polymarket’s valuation to $8 billion.
The influx of capital has allowed the company to secure high-profile partnerships. The platform recently signed a deal with the NHL to become an official prediction market partner. This agreement grants access to official league data and branding rights.
Further integration with the sports and tech ecosystem is evident in recent collaborations. Polymarket has teamed up with the fantasy sports operator PrizePicks to distribute its markets to a wider audience.
On the data front, the company has integrated with Yahoo Finance and Elon Musk’s X platform. These deals aim to embed prediction markets into the daily content consumption of sports fans and financial traders.
State-Level Resistance and Integrity Concerns
While federal regulators have cleared a path for Polymarket, state authorities present a new obstacle. The Connecticut Department of Consumer Protection recently issued a cease-and-desist order to the company.
State regulators argued that the platform operates as an unlicensed gambling service. Similar legal challenges have emerged in Nevada against other crypto-based platforms. These actions highlight a growing jurisdictional conflict between federal commodities laws and state gambling statutes.
The platform also faces scrutiny regarding market integrity. A recent scandal involving alleged insider trading on Google search trends shook confidence in the system.
Critics argue that without strict controls, insiders can exploit non-public information to drain liquidity from regular users. Additionally, the company drew criticism for hosting markets on controversial behavior, such as betting on fans throwing objects at WNBA players.
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