Polymarket Eyes $9B Valuation as Prediction Markets Go Mainstream

Polymarket, the online prediction market platform where users bet on real-world outcomes, is reportedly considering a deal that would value the company at $9 billion, according to The Information. This marks a dramatic rise from its $1 billion valuation just three months ago, following a funding round led by Peter Thiel’s Founders Fund.

The surge in valuation comes as U.S. regulators ease restrictions on prediction markets. In 2021, the Commodity Futures Trading Commission (CFTC) barred Polymarket from offering contracts in the U.S. However, earlier this year, the agency granted approval for domestic operations, paving the way for rapid growth.

Polymarket lets users wager on political elections, court rulings, and global events. During the last U.S. election cycle, the platform processed over $8 billion in bets, surpassing major sports betting sites like FanDuel, DraftKings, and Betfair in online traffic.

Rival platform Kalshi has also seen its valuation jump to $5 billion, more than doubling from $2 billion earlier this year. The growth signals increasing investor confidence that regulated prediction markets could become a mainstream financial product.

Adding to its momentum, Polymarket has secured backing from politically connected investors. Donald Trump Jr.’s venture capital firm, 1789 Capital, recently invested tens of millions of dollars, with Trump Jr. also joining as an advisor.

Despite growing popularity, prediction markets remain controversial in Washington. Critics warn they could spread misinformation, while advocates argue they provide transparent, data-driven insights into public expectations on political and geopolitical outcomes.

As retail investors return and regulatory barriers lift, Polymarket’s rise highlights the growing acceptance of prediction markets as both an investment vehicle and a tool for gauging real-time sentiment on global events.