Polymarket has reportedly raised USD 300 million from 1789 Capital as part of a USD 1 billion funding round. According to the report by The Wall Street Journal, the investment forms part of a broader funding round for Polymarket totalling around USD 1 billion.
1789 Capital had previously invested USD 200 million in Polymarket, bringing its cumulative commitment to the platform to USD 500 million once the new round is included. The fund has also backed other technology-related ventures, including the Enhanced Games, an alternative sporting competition founded by former technology industry figures that permits the use of performance-enhancing substances. Polymarket had not issued a public comment on the reported funding at the time of the original report.
Regulatory scrutiny around prediction markets
The investment comes as prediction markets face increasing regulatory attention in the US. At least 20 states are engaged in litigation against prediction market operators, including Polymarket and Kalshi, over sports-related wagers offered on their platforms, according to reporting by The New York Times in August 2026.
The federal government has taken a different position from several state regulators. The Trump administration has argued that the Commodity Futures Trading Commission (CFTC) should serve as the sole regulator of the prediction market industry, rather than individual state authorities. The CFTC has, in turn, filed lawsuits against at least nine states over their attempts to regulate the sector.
In July 2026, a coalition of 44 state attorneys general signed a letter contesting the CFTC’s position, arguing that the agency does not have the authority to regulate sports-related wagers on prediction platforms. The dispute reflects an ongoing divide between federal and state approaches to overseeing the sector.
The reported funding round underscores continuing investor interest in prediction markets despite the unresolved regulatory dispute between state and federal authorities. The outcome of ongoing litigation, as well as any future rulings on CFTC jurisdiction, is likely to shape how prediction market operators such as Polymarket structure their US operations going forward.
