Polymarket is reportedly seeking about $1 billion in funding at a valuation above $20 billion, according to Bloomberg, as prediction markets grow in the United States while facing regulatory restrictions across Europe.
Bloomberg reported on August 4, 2026, that discussions remain preliminary. CNBC separately confirmed the talks and proposed valuation through a person familiar with the matter. Polymarket has not commented, and potential investors remain unnamed.
April Funding Sets the Benchmark
An April financing valued Polymarket at $15 billion, according to Bloomberg and a person familiar with the situation who spoke to CNBC. D.E. Shaw and G Squared joined existing investors SV Angel, Dragonfly and Valor Equity Partners. Polymarket has not publicly confirmed the financing.
The valuation followed a $600 million direct investment from Intercontinental Exchange, announced March 27, 2026. The New York Stock Exchange owner also agreed to up to $40 million in purchases from existing shareholders. The arrangement followed a commitment disclosed in October 2025 for as much as $2 billion at an approximate $8 billion valuation before the investment.
Intercontinental Exchange said the valuation attached to its $600 million investment would be disclosed once Polymarket completed its fundraising. That has yet to happen.
Kalshi Sets the Comparison
Kalshi announced a May financing that valued the company at $22 billion. The Financial Times reported in June that it was discussing another round for the third quarter at a potential $40 billion valuation.
Kalshi operates a federally regulated US exchange under Commodity Futures Trading Commission oversight, while Polymarket uses blockchain infrastructure and cryptocurrency for settlement. Both remain private and do not publish audited financial statements.
Polymarket told CNBC in late June that annualised revenue had exceeded $1 billion after its regulated US exchange launched in May. The service had opened through a waitlist in December. Genius Sports announced partnerships with both companies in early August covering content, integrity services and marketing.
Europe Remains a Barrier
Neither platform holds an EU license. France, the Netherlands, Belgium and Portugal have issued enforcement actions naming Polymarket. Spain’s Directorate General for Gambling Regulation ordered internet service providers to block both platforms in May 2026. Gibraltar and Malta are moving toward dedicated frameworks.
Roman Baranovskyi, head of iGaming and investment practice at SBSB Fintech Lawyers, said the valuations show that European access currently plays a limited role in the companies’ growth.
“Kalshi and Polymarket are being priced almost entirely on what their US business already earns. Kalshi’s $22 billion valuation in May and Polymarket’s reported $20 billion talks both follow purely domestic, regulated growth.”
Baranovskyi said European gambling restrictions and financial-market rules create separate obstacles.
“Europe closed off two separate paths to that same growth: national gambling regulators moved to block unlicensed platforms, and ESMA ruled that these contracts qualify as the same kind of instrument MiFID II has barred from retail investors since 2018,” he said. “A crypto licence under MiCA would solve neither problem.”
He added: “That is what the $20 billion figure is really pricing: a business that has already proven it can hit that number without Europe’s approval.”
Source:
“Polymarket targets $20bn valuation despite Europe’s prediction market crackdown”, europeangaming.eu, August 7, 2026
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