Polymarket's Annual Revenue Nears $2 Billion

Polymarket said its annual revenue reached $1.8 billion, driven by its US platform, which it opened in May. The figure comfortably exceeds the $1 billion projection the company made in June. Speaking to CNBC, the company said its annual revenue run rate is at this level.

The World Cup in June and July, along with the start of the college football and NFL seasons, boosted trading volume. Notional volume on the US platform reached $14.5 billion last month. That is more than three times the $4 billion volume of four months earlier.

The company raised $1 billion from some investors, and its valuation rose to about $21 billion. Reports said $300 million of the money raised in August came from Donald Trump Jr.'s venture capital firm, 1789 Capital. In the April round, Intercontinental Exchange invested $600 million, and a consortium managed by D.E. Shaw invested $400 million.

However, the company faces risks. Investor concerns about founder and CEO Shayne Coplan and worries about falling behind its main rival are being debated. News at the end of October that former marketing director Matthew Modabber was dismissed in an internal investigation fueled this debate. The federal regulator, the CFTC, is reviewing the company's advertising practices. Since January, Democrats will hold a majority in both chambers of Congress, so political pressure on the sector could increase. Trump Jr. is considered among those most affected by this pressure, as he advises both Polymarket and a rival company. The possibility that the Supreme Court could cancel sports event contracts, the most traded derivatives on prediction markets, also remains a risk before 2027. There is currently no case before the court on this issue.