Polymarket has raised $300 million from 1789 Capital as part of a funding round totaling around $1 billion, according to the Wall Street Journal, which cited unnamed sources. 1789 Capital is an investment fund in which Donald Trump Jr. is a partner, and the firm previously invested $200 million in the prediction market. The new capital brings the total disclosed investment from 1789 Capital to $500 million across two rounds. 1789 Capital has also backed other controversial tech-adjacent projects, including the Enhanced Games, sometimes called the "steroid Olympics" and founded by veterans of various tech companies.
The news arrives as prediction markets face heightened regulatory scrutiny across the United States. At least 20 states are currently engaged in litigation against prediction sites over sports wagers offered on those platforms. Many state governments are seeking to institute new rules governing how, or even whether, residents can use such sites. The legal battles center on whether state regulators have authority over these markets.
The federal government has frequently moved to defend the prediction industry from state-level regulation. The Trump administration has argued that the Commodity Futures Trading Commission should be the sole regulator of the industry, not state governments. In line with that position, the CFTC has sued at least nine states over their attempts to regulate prediction sites. That federal stance has drawn opposition from a coalition of 44 state attorneys general, who recently signed a letter asserting that the CFTC lacks the authority to regulate sports-related wagers on prediction markets.
Donald Trump Jr. has been publicly involved in the regulatory debate. The New York Times reported that he recently appeared at an event involving conservative state attorneys general. At that event, he described the prediction industry as already having robust oversight and characterized prediction sites as tools overseen by federal officials rather than by state attorneys general. His remarks align with the administration's position that the CFTC should hold exclusive regulatory power.
The funding and regulatory disputes come as prediction markets gain mainstream attention for their role in forecasting elections and other events. Polymarket, which allows users to place bets on outcomes, has become one of the most prominent platforms in the sector. The new $300 million injection from 1789 Capital is part of a broader round that values the company鈥檚 latest fundraising at roughly $1 billion. Neither Polymarket nor 1789 Capital has publicly confirmed the details reported by the Journal.
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