Prediction Markets Move Into the Mainstream with Polymarket’s Return to the U.S.

Polymarket, a decentralized platform for prediction markets, has discreetly resumed its U.S. services in a beta phase,

nearly three years after relocating abroad due to a $1.4 million penalty imposed by the Commodity Futures Trading Commission (CFTC) in 2022. Now operating in full compliance with American laws, the company has purchased QCX LLC and QC Clearing—both licensed for derivatives—for $112 million, . This strategic acquisition places Polymarket in a strong position within the fast-growing prediction market industry, for contracts related to sports, politics, and economic events.

This relaunch comes at a time when competition in the sector is intensifying. Kalshi Inc., Polymarket’s chief competitor, has held a solid foothold in the U.S. since obtaining regulatory approval in 2023. At the same time, ProphetX,

, is also aiming for national reach by seeking a comprehensive exchange license from the CFTC. Unlike conventional sportsbooks, platforms such as Polymarket and Kalshi offer binary contracts, instead of betting against the operator. This approach has who are looking for alternative insights into market sentiment and event likelihoods.

Polymarket’s comeback is further supported by alliances with major financial platforms.

, integrating live odds for global events into its popular financial portal. Google Finance has also revealed plans to display data from both Polymarket and Kalshi in its search results, of prediction markets as valuable analytical resources. These collaborations come after a record-setting October for Polymarket, during which it and achieved unprecedented levels of active users.

The platform’s emphasis on sports betting—a U.S. market exceeding $100 billion—positions it to benefit from recent regulatory changes.

paved the way for federally regulated betting in states where it was previously limited by local regulations. Polymarket’s technology, built to address the unique challenges of sports events such as weather disruptions and player injuries, . ProphetX CEO Dean Sisun pointed out the complexities of sports-related contracts, stating that “unlike elections, sports results demand sophisticated technology to manage factors like injuries and rule modifications” .

As prediction markets evolve, they are increasingly scrutinized for risks of manipulation and insider trading.

in basketball and baseball have amplified these concerns. Polymarket has introduced systems to detect unusual trading activity, but Sisun stressed the importance of clearer regulatory guidelines distinguishing legitimate insights from illicit conduct .

The growing sector is also attracting established financial firms.

by 2026, citing increasing interest in contracts tied to economic and geopolitical events. Meanwhile, CME Group and FanDuel have announced intentions to jointly launch a prediction market platform . These trends highlight a significant transformation as prediction markets shift from niche crypto products to mainstream financial tools .