Polymarket raises $300M from Donald Trump Jr.’s fund
Polymarket has raised $300 million in a new funding round from 1789 Capital, backed by Donald Trump Jr., amid mounting state and federal regulatory battles.
Stock photo for illustration only, not from the actual event
- Polymarket secures $300 million from investment fund 1789 Capital
- The new funding round totals approximately $1 billion in value
- 1789 Capital previously invested $200 million into the prediction platform
- At least 20 U.S. states are currently engaged in lawsuits against prediction sites
Popular prediction market Polymarket has raised $300 million from 1789 Capital as part of a new funding round totaling approximately $1 billion, according to a report by The Wall Street Journal citing unnamed sources.
1789 Capital, an investment fund where Donald Trump Jr. serves as a partner, previously poured $200 million into the prediction site. The firm has also backed other controversial tech projects, including the Enhanced Games—often dubbed the steroid Olympics—founded by veterans from various tech companies. TechCrunch has reached out to Polymarket for comment on the matter.
Stock photo for illustration only, not from the actual event
Prediction markets have increasingly come under stringent regulatory scrutiny as numerous state governments attempt to institute new rules regarding how residents can interact with these websites. Currently, at least 20 states are engaged in active litigation against prediction platforms over sports wagers offered on their sites.
Meanwhile, the federal government has frequently sought to defend the prediction industry from state-level regulation. The Trump administration has argued that the sole regulator for this sector should be the Commodity Futures Trading Commission, or CFTC, rather than individual state governments. The CFTC has already sued at least nine states over their regulatory attempts.
This regulatory tug-of-war between U.S. state governments and the federal administration highlights the legal ambiguity surrounding prediction markets. As decentralized and alternative financial platforms grow, jurisdictional battles between federal regulators like the CFTC and state authorities underscore the ongoing friction over who holds oversight authority.
In response to these federal actions, a coalition of 44 state attorneys general recently signed a joint letter arguing that the CFTC lacks the legal authority to regulate sports-related wagers hosted on prediction websites.
Source: TechCrunch
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