Despite murky legal landscape, companies are undeterred in their prediction market investments
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- CFTC and six states are suing over jurisdiction to regulate prediction markets, with 17 states challenging companies and one state moving to ban them entirely.
- Flutter CEO Jeremy Peter Jackson said the company will keep investing in market‑making on third‑party prediction market platforms despite the legal uncertainty.
- DraftKings CEO Jason Robins said the firm expects to continue investing in its prediction market platform through 2027, assuming a stable regulatory environment.
- Kalshi's valuation rose to $22 billion after a funding round, up from $11 billion in December.
- Polymarket is reportedly valued at $15 billion, up from $9 billion in October.
Why it matters: Investors in Kalshi and Polymarket stand to gain as valuations surge to $22 billion and $15 billion, while regulators risk missing out on oversight of a market projected to expand beyond sports contracts, potentially reshaping betting revenue streams.
