Polymarket's annualized revenue passed $1 billion in late June 2026, powered by new taker fees and a wave of sports-league partnerships. At the same time, 20 states are suing the platform over whether its contracts are illegal gambling, and a Ninth Circuit ruling on Aug. 28 just handed the states their biggest win yet.
Polymarket crossed $1 billion in annualized revenue by late June 2026, just six weeks after lifting its U.S. waitlist. The platform had no trading revenue in 2025, before taker fees of three to seven basis points were introduced this year, with makers paying nothing.
Sports leagues sign on
Major League Baseball named Polymarket its exclusive prediction market partner on March 19, in a deal reported at $150 million to $300 million over three years. The agreement gives Polymarket official league data and rights to MLB team logos, while MLB and Polymarket coordinate to exclude markets on individual pitches, manager decisions, and umpire calls.
Then, on Aug. 3, Polymarket became the ATP Tour's official prediction market provider, covering 20,000 matches per season. On Aug. 27, an expanded Sportradar partnership pushed that reach to approximately 300,000 matches across more than 20 leagues, including the Bundesliga and Euroleague Basketball.
Twenty states, one court ruling
While leagues signed on, regulators pushed back. Twenty states are in active litigation arguing Polymarket's sports contracts are illegal gambling, and 44 state attorneys general told the CFTC in late July it has no authority over the platforms. The CFTC, in turn, has sued nine states to defend its exclusive jurisdiction.
That standoff tipped on Aug. 28, when a Ninth Circuit panel ruled unanimously that states can regulate prediction markets as gambling. According to crypto.news: "the substance of the sports event contracts offered on Kalshi's exchange is sports gambling". The ruling contradicts an earlier Third Circuit decision that favored the platforms, setting up a likely Supreme Court fight.
Investors keep buying in
The legal risk hasn't slowed the money. Polymarket is now seeking to raise $1 billion at a valuation above $20 billion, up from the $9 billion valuation Intercontinental Exchange paid. Intercontinental Exchange took a $2 billion stake in Polymarket in October 2025.
Source: crypto.news
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