Prediction market platform Polymarket has reportedly raised $300 million from 1789 Capital as part of a larger funding round that could total around $1 billion, according to The Wall Street Journal.
1789 Capital, an investment firm where Donald Trump Jr. is a partner, previously invested $200 million in Polymarket. The firm has also backed other technology ventures, including Enhanced Games.
Polymarket Funding Faces Regulatory Questions
The reported investment comes as prediction markets face growing scrutiny from U.S. regulators and state governments. Several states have challenged platforms over sports-related prediction contracts, arguing they fall under gambling regulations.
The New York Times reported that multiple states are involved in legal disputes with prediction market companies as authorities debate oversight rules.
The federal government has argued that prediction markets should be regulated by the Commodity Futures Trading Commission (CFTC), while states have challenged that position. A coalition of 44 state attorneys general said the CFTC does not have authority over sports-related prediction markets, according to CNBC.
CBS News reported that the dispute between states, federal regulators and prediction platforms continues as these services expand.
Trump Jr. has defended prediction markets as platforms operating under federal oversight. Polymarket has not publicly commented on the reported funding round.
