Adam Roarty is a journalist covering sports betting, regulation, and industry innovation for CasinoBeats. His coverage includes tax increases in the UK, covering breaking stories in the ever-evolving landscape of US betting such as the...
Read Full BioPolymarket is allegedly recruiting traders for an in-house market-making team that would essentially operate like a sportsbook, taking positions against users.
An unnamed source told Bloomberg that the company has been contacting sports bettors to join the unit. Polymarket declined to comment on the matter.
Founder and CEO Shayne Coplan has publicly criticized sportsbooks, claiming they are a scam. He stated, “They all rip off the consumer, respectfully. You can only trade against the house. They can ban you if you make money, and they can profile you as a user and change the prices based on you. That’s a scam. In traditional finance, that’s like a bucket shop. It’s a scam. Those are illegal.”
He did not mention that the company is also setting up its own in-house trading department that will allow users to trade against the house. The platform is available again to US users, and rose to number one in the app store for sports, following Coplan’s recent appearance on “60 Minutes.”
Lawsuit Against Kalshi Alleges Platform Acts as Sportsbook
If it proves to be true, then Polymarket could face legal challenges. Kalshi is facing a lawsuit filed in New York that alleges it is engaged in a similar practice.
It alleges Kalshi’s platform “resembles a betting exchange where users place wagers indistinguishable from bets placed against a house.”
According to the lawsuit, consumers are often betting against Kalshi itself—through “market maker” subsidiaries, Kalshi Trading LLC and KalshiEx, or hedge-fund partners, such as Susquehanna International Group.
As a result, the plaintiffs claim they have been deceived by Kalshi and want the company to refund their losses.
Kalshi co-founder Luana Lopes Lara called the lawsuit a smear campaign and said the allegations are baseless. She stated, “Kalshi is an exchange. It’s peer-to-peer and there is no house. Anyone can place orders and trade against anyone else, whether it’s a person or an entity.
“Like any financial exchange, we have market makers that compete openly against each other and help bootstrap liquidity. Anyone can sign up to our market maker programs, where you commit to liquidity obligations: if you’re interested, email support and we’ll get you set up.”
Is Polymarket Set for Legal Battles?
Kalshi is facing a string of lawsuits largely claiming the platform is operating in violation of state gambling laws. Polymarket has officially been banned from the US since 2022, when the Commodity Futures Trading Commission (CFTC) fined the company $1.4 million and ordered it to cease operations in the country.
As it relaunches in the US, the platform may expect the same legal scrutiny as its rival. In addition to Kalshi, Crypto.com has also drawn the attention of regulators, who have issued cease-and-desist orders.
An in-house trading team would further the claims that the companies are offering unlicensed betting and could strengthen legal cases. Kalshi is locked in a total of 18 legal battles across the country. Polymarket may need to recruit a strong legal team in addition to a trading team.
