Strict regulations trigger enforcement actions
Singapore, known for its innovation yet strict gambling policies, has officially classified Polymarket as an illegal gambling platform. Under the Gambling Control Act 2022, accessing unlicensed gambling sites like Polymarket can result in fines up to 10,000 SGD, imprisonment, or both.
Profiting from tragedy sparks backlash
Polymarket allowed users to bet on outcomes related to the destructive Palisades wildfire, igniting public outrage. Critics accused the platform of exploiting human suffering, with concerns raised about incentivizing harmful behavior like arson. Despite defenses from supporters, the backlash intensified due to the ongoing disaster.
FBI and CFTC investigate Polymarket operations
The FBI raided Polymarket CEO Shayne Coplan's home in November 2024, followed by a CFTC subpoena to Coinbase for user data related to Polymarket. The platform previously settled a $1.4 million fine with the CFTC in 2022 for unregistered operations, highlighting its ongoing legal troubles.
Election-driven growth faces post-peak challenges
Polymarket saw record growth during the U.S. elections, peaking at $2.62 billion in trading volume in November 2024. However, activity declined sharply post-election, with January 2025 volumes projected to drop by 50%, reflecting its reliance on major global events.
Balancing innovation and compliance
Polymarket now faces mounting legal challenges and public criticism. Its future hinges on navigating global regulations while addressing ethical concerns over its prediction markets. Ongoing investigations may reshape its role in the crypto betting industry.