Polymarket, the world’s largest prediction market, has received regulatory approval to operate within the United States.
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Specifically, the U.S. Commodity Futures Trading Commission (CFTC) has granted approval for privately-held Polymarket to operate as a fully regulated U.S. platform. The approval enables Polymarket to offer services to bettors in the U.S. through futures commission merchants and traditional brokerages.
The company’s platform lets people wager on the direction of asset prices and the outcome of events, ranging from the future direction of interest rates and cryptocurrency prices to election results. Polymarket said previously that it expected to return to the U.S. in November of this year after its access to the American market was shut off in 2022 by the previous administration of President Joe Biden.
Polymarket’s Popularity
Going forward, bettors in the U.S. will be able to trade Polymarket contracts through merchants and brokerages. The CFTC said that Polymarket will be fully regulated in the U.S., similar to supervised exchanges, including enhanced surveillance, clearing procedures, and reporting obligations.
“People rely on Polymarket because we provide clarity where there is confusion,” said CEO Shayne Coplan in a news release, adding that the regulatory approval in the U.S. reflects growing acceptance of prediction markets as a mature financial product.
Some critics say that platforms like Polymarket are akin to gambling and can exacerbate people’s addiction to betting. Still, several companies are pushing further into prediction markets as they become more popular, including DraftKings (DKNG).
Is DKNG Stock a Buy?
As Polymarket is not publicly traded, we’ll look at the stock of DraftKings, which has a consensus Strong Buy rating among 28 Wall Street analysts. That rating is based on 23 Buy and five Hold recommendations issued in the last three months. The average DKNG price target of $44.25 implies 43.11% upside from current levels.
Read more analyst ratings on DKNG stock