Polymarket bags $300M from Donald Trump Jr's investment fund
What's the story
Polymarket, a leading prediction market platform, has raised $300 million from 1789 Capital as part of a new funding round. 1789 Capital is an investment fund in which Donald Trump Jr. is a partner. The latest funding round brings the total amount raised by Polymarket to around $1 billion, The Wall Street Journal reported citing unnamed sources.
Investment history
1789 Capital's previous investment and other controversial projects
1789 Capital had previously invested $200 million in Polymarket.
The firm has also backed other controversial tech-related projects such as the Enhanced Games, a so-called "steroid Olympics" started by veterans of various tech companies.
TechCrunch has reached out to Polymarket for a comment on the new funding round and its implications.
Regulatory challenges
Regulatory challenges for prediction markets
Despite the funding boost, prediction markets like Polymarket are facing increased regulatory scrutiny.
Many US state governments are looking to impose new rules on how these sites can be used by residents.
At least 20 states are currently suing prediction sites over sports wagers offered on those platforms.
The federal government has often defended the prediction industry against state regulation, arguing that it should only be regulated by the Commodity Futures Trading Commission (CFTC).
Regulation dispute
CFTC's authority questioned by state AGs
A coalition of 44 state attorneys general recently signed a letter arguing that the CFTC does not have the authority to regulate sports-related wagers on prediction sites.
The New York Times reported that Trump Jr. recently attended an event with conservative state attorneys general, where he claimed the prediction industry already has "robust oversight" and called prediction sites a tool "overseen by federal officials, not state attorneys general."