Polymarket is preparing for a potential relaunch of operations in the U.S. with a new advertisement campaign after leaving the country due to regulatory shortcomings.
The prediction market published a series of advertisements last week that tease a potential launch of operations in the U.S. after exiting the country in 2022 due to a settlement with the Commodity Futures Trading Commission (CFTC).
That year, the CFTC ordered Polymarket to pay a $1.4 million civil monetary penalty for failure to register as a swap execution facility and a designated contract market.
Polymarket is preparing for its reentry by sharing ads anticipating the ability to trade with the platform in all 50 states. Polymarket is delivering its latest set of new ads via Meta’s Facebook and Instagram social media sites.
One of the ads targets residents in Texas, where online sports betting is still unlawful.
Polymarket has also shared an ad that compares contract odds to major sportsbooks and is allowing customers to provide their phone numbers for updates on its U.S. launch.
Polymarket acquisition clears pathway for US launch
Polymarket is making plans to reenter the U.S. behind the acquisition of federally registered derivatives exchange QCX and its affiliated clearinghouse. Polymarket acquired QCX and its clearinghouse in a deal valued at $112 million. QCX allows Polymarket to reenter the U.S. as a CFTC-registered designated contract market.
As a result of the deal, Polymarket US registered with the CFTC and could bring its prediction market back to America as early as Sept. 5, just days before the start of a new NFL season. On that date, the latest reversion of its rulebook will become effective.
In anticipation of a U.S. launch, Polymarket compiled a rulebook that sets the foundation for the company’s operations by detailing its operational plans and protocols. Polymarket shared its rulebook on the QCEX website. The house rules for the website are dated to take effect on Sept. 5.
Polymarket could be in competition with FanDuel
Polymarket is eyeing the U.S. amid major movement within the prediction market space.
Earlier this week, FanDuel announced a partnership with derivatives marketplace CME Group to create a joint trading platform for event contracts. The two entities are collaborating to operate a non-clearing futures commission merchant. CME and FanDuel will provide users with event contracts but the two companies have not voiced plans to offer sports-focused trading. However, FanDuel and CME announced plans to offer event contracts based on finance, including cryptocurrencies and key economic indicators.
FanDuel declined to comment on how the joint venture could incorporate sports contracts in the future when asked by SBC Americas.
The offering is expected to launch later this year, pending regulatory approval by the CFTC.
