Polymarket Eyes US Return Amid Prediction Market Debate

The US emerging sports prediction industry is about to get a bit bigger.

Polymarket has purchased QCEX, a Commodity Futures Trading Commission (CFTC)-licensed exchange, for $112 million. The purchase will allow the prediction market operator to return to the country for the first time since 2022. An investigation by the US Department of Justice into the company led to a ban on operating within the US market, but it was dropped just days ago.

"When we began the process to obtain our DCM & DCO licenses over 4 years ago, the prediction market was in its infancy,” a press release from QCEX founder Sergei Dobrovolskii read. “But we have long believed in its potential to change the way people access and understand information and express their views on that information. Shayne has built a cultural phenomenon in Polymarket. I am excited to bring our companies together and leverage our licenses, technology, and expertise in the retail trading sector to help Polymarket reach its full potential."

The operator’s return is a massive victory for Polymarket, but it may be short-lived. The legal battle over the sports prediction industry continues to rage in the US, leaving its legal status somewhat murky. While early rulings have favored the industry, a Maryland court appears poised to deliver its first significant loss.

No timetable has been provided for the Polymarket’s US launch.

CFTC Lay Offs Spark Concerns

The CFTC has not been immune from the White House’s push for mass layoffs across federal departments. According to Reuters, the CFTC has let over 24 people go this week. This leaves the department with just 636 full-time staff. 

The layoffs have sparked concern among many responsible gaming advocates. The amount of staff employed is far too small to properly monitor for problem gambling and enforce regulations around sports prediction markets. 

These dangers mean customers struggling with gambling addiction will be far more at risk of betting beyond their means. It could also open the door to aggressive marketing tactics from operators.