U.S. senators seek CFTC probe into Polymarket over promotional betting practices

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CFTC probe into Polymarket

Highlights

Senators John Curtis and Adam Schiff requested the CFTC clarify if it is investigating Polymarket's staged promotional bets and address gambling regulation concerns.
The Wall Street Journal found 1,105 promotional videos from December 2025 to May showing $1.9 million in staged, non-genuine bets by creators paid by Polymarket.
Polymarket, valued at $15 billion and under increasing scrutiny, previously settled with the CFTC for $1.4 million and faces multiple federal investigations regarding U.S. regulatory compliance.

Senators press for federal review

As first reported by The Block, Sens. John Curtis of Utah and Adam Schiff of California sent a letter on Thursday to CFTC Chair Michael Selig asking whether the agency is investigating Polymarket and whether it will preserve state and tribal authority over sports betting and casino-style gaming products.

In the letter, the bipartisan pair says it remains concerned that the commission is neither enforcing the law appropriately nor equipped to serve as a federal gambling regulator. The lawmakers say the agency should not allow companies to use CFTC oversight to avoid state and tribal gambling laws, weaken consumer protections, or promote betting-style products through deceptive campaigns.

The request comes after the Journal reported last week that Polymarket paid dozens of social media creators to film staged bets and, in some cases, fake wins on replicas of its site. The newspaper says it reviewed 1,105 videos from 10 creators spanning December 2025 to mid-May, finding that bets appeared in about 70% of them and that none of the wagers, valued at about $1.9 million, were real.

Polymarket tells the Journal it is committed to maintaining accurate, fair and transparent markets and plans a comprehensive audit of its promotional content. A CFTC spokesperson says the agency cannot confirm or deny an investigation, while Polymarket does not immediately respond to a request for comment in the report text provided.

Mounting oversight pressure on prediction markets

Prediction markets have expanded sharply over the past year, with Polymarket valued at $15 billion, and that growth is drawing greater attention from regulators and lawmakers. The platform already faces a history of regulatory pressure in the U.S., including a 2022 settlement with the CFTC over event-based binary options that required it to pay $1.4 million in fines and block U.S. users.

Later in 2024, the Federal Bureau of Investigation seized CEO Shayne Coplan's phone, and the company reportedly faced a Department of Justice investigation over alleged U.S. users. Insider trading concerns also move into focus after an anonymous Polymarket user earned more than $400,000 on a wager tied to Venezuelan President Nicolas Maduro, with prosecutors later arresting active-duty U.S. Army soldier Gannon Ken Van Dyke, 38, over allegations he used confidential information to place that bet.

As the sector grows, the CFTC is asserting jurisdiction over prediction market firms while also clashing with states over who regulates sports-related bets. Some lawmakers are questioning whether the agency has sufficient resources to oversee prediction markets, particularly as it is expected to play a larger role in regulating digital assets.

Our earlier article covered how House lawmakers are reviewing the modern investment ecosystem, focusing on the rapid growth of index funds, ETFs, and active ETF structures. The hearing examined whether existing market rules still support investor choice, efficient price discovery, and capital formation as retail participation and product variety expand.

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