Polymarket has reportedly raised EUR 259 million from 1789 Capital as part of a new funding round totaling roughly EUR 1 billion, according to reporting citing unnamed sources.
1789 Capital, an investment fund in which Donald Trump Jr. is a partner, previously committed EUR 172 million to the prediction site. The firm has backed other controversial tech-related ventures, including the Enhanced Games, the so-called “steroid Olympics” founded by veterans of various technology companies.
Why the Polymarket Funding Round Matters
The fresh capital arrives as prediction markets attract mounting attention from investors and regulators alike. The reported EUR 1 billion round positions Polymarket as one of the most heavily financed players in the sector, with 1789 Capital emerging as a repeat backer following its earlier EUR 172 million stake.
Polymarket has not yet issued a public comment on the round.
Regulatory Scrutiny Intensifies
Prediction markets have faced rising regulatory pressure as many state governments push to establish new rules governing how, or whether, residents can use the sites. At least 20 states are engaged in litigation against prediction platforms over sports wagers offered through them.
The federal government has repeatedly moved to shield the industry from state-level oversight. The Trump administration has argued that the Commodity Futures Trading Commission (CFTC) should serve as the sole regulator, rather than individual states. The CFTC has sued at least nine states over their attempts to regulate the industry.
A coalition of 44 state attorneys general recently signed a letter contending that the CFTC lacks the authority to regulate sports-related wagers on prediction sites.
Trump Jr.’s Role in the Debate
Donald Trump Jr. recently appeared at an event involving conservative state attorneys general, where he described the prediction industry as already having “robust oversight.” He characterized prediction sites as a tool “overseen by federal officials, not state attorneys general.”
1789 Capital’s expanded investment deepens the fund’s financial exposure to a market now at the center of a jurisdictional dispute between federal regulators and state officials. At least nine states currently face CFTC lawsuits tied to their regulatory efforts.
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Image: techcrunch.com
