Polymarket boss dubs sportsbooks ‘a scam’
Polymarket Chief Executive Shayne Coplan has criticized traditional sportsbooks, calling them a ‘scam’ and suggesting they ‘rip off’ consumers.
Speaking at the Axios BFD conference on Tuesday, Coplan said he believed the US Supreme Court would ultimately decide whether the prediction market model, which offers event contracts on sports and cultural events, was legal.
In the interview with Axios business editor Dan Primack, Coplan criticized the differing sports betting laws from state to state. He also criticized the biggest sports betting companies, alleging that they ban or limit the most successful bettors.
Describing some of the biggest sportsbooks in the US, Coplan said, “None of them innovate. They all rip off the consumer, respectfully, not that they’re not fun on game day.”
He went on to add, “They can go and ban you if you make money, they can kick you off, and they can profile you as a user and change the prices based on you, like, that’s a scam.”
Operators have denied large-scale limiting of betting accounts, testimony that appeared to be backed up in recent figures from the Massachusetts Gaming Commission, which found that just 0.64% of bettors in the state had faced account limitations.
Coplan also acknowledged that the prediction platform is not yet profitable, he said that would change with Polymarket eventually taking a cut of trading.
His comments come as prediction markets have secured a series of legal victories, allowing them to operate in states where sports betting remains illegal.
At the same time, traditional sports gambling has come under scrutiny after a series of scandals involving NBA and MLB players.Meanwhile, both DraftKings and FanDuel are exploring their own prediction market offerings in states where they lack sports-betting licenses, leading them to withdraw from the American Gaming Association earlier this week.
Polymarket is currently working towards reopening in the US market after the US government shutdown slowed the review process.
Abi Bray brings strong researching skills to the forefront of all of her writing, whether it’s the newest slots, industry trends or the ever changing legislation across the U.S, Asia and Australia, she maintains a keen eye for detail and a passion for reporting.
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The Backstory
Why the rhetoric matters now
Polymarket chief Shayne Coplan’s sharp criticism of sportsbooks lands at a pivotal moment for prediction markets, which are moving from crypto niche to mainstream finance and sports media. His comments, aimed at industry practices and uneven state regulation, highlight a strategic bet: that federally regulated event contracts can scale where state-by-state sports wagering bogs down. The stakes are rising as prediction platforms seek legitimacy, customers and distribution ahead of an expected ramp in U.S. access.
In recent months Polymarket has pursued a multi-front push to reenter the U.S., secure top-tier partners and court capital. The approach has amplified longstanding tensions between federal oversight under the Commodity Futures Trading Commission and state gambling regimes, which argue prediction markets are functionally wagers. Coplan’s remarks encapsulate that rift as litigation, licensing and commercial deals collide.
A federally cleared route back to U.S. users
Polymarket laid the groundwork for a domestic return by acquiring CFTC-licensed exchange and clearinghouse QCEX for $112 million, a move designed to bring event contracts under federal derivatives rules. Regulators followed with a key procedural step: a no-action letter on Sept. 3 that opened a path to offer U.S. trading through QCEX-affiliated entities and limited product categories.
Filings detail the initial scope. Polymarket sought certifications to list contracts on athletic events, athletic spreads, total athletic scores and election winners, with an early October launch window, according to a report on the planned relaunch. Coplan, speaking at a joint SEC-CFTC panel, framed the effort as building products that mirror “the spirit” of traditional financial rules while leveraging on-chain technology — a nod to the hybrid model the company is now championing.
The pivot is also an acknowledgment of prior limits. Polymarket agreed four years ago to block U.S. users after CFTC allegations it ran an unregistered platform. Returning with a brokered, federally supervised structure aims to inoculate the business from state-level pushback, though it hardly resolves jurisdictional disputes now intensifying around the category.
Distribution deals aim at mainstream audiences
Polymarket is pairing regulatory progress with audience reach. The company became the official prediction market partner of X, planning an integrated product that combines Polymarket probabilities with X’s real-time data and Grok analysis. The goal is to surface market-driven signals alongside news and social trends, positioning prediction prices as a new layer of context for tens of millions of users.
The logic is straightforward: prediction markets are only as useful as their liquidity and visibility. X integration could widen both, especially around fast-moving news and sports moments where retail participation spikes. It also foreshadows product features — alerts, embeds, and charts — designed to make event contracts feel as familiar as a poll or a live score.
Leagues’ embrace meets statehouse resistance
Perhaps the starkest sign of normalization came when the NHL struck multi-year partnerships with Polymarket and rival Kalshi, allowing official branding and data across regular-season broadcasts and tentpole events. League imprimatur lends credibility and reach, while tying prediction markets to existing fan behavior like live viewing and second-screen engagement.
But the deals triggered immediate political and regulatory blowback. The American Gaming Association called the NHL tie-up “deeply concerning,” warning that prediction markets bypass state consumer protections by relying on CFTC licenses. Nevada regulators, in a notice to licensees, reiterated they view sports event contracts like traditional wagers, permissible only via in-state sports pool approvals. The clash underscores the core fault line: whether a federally supervised event contract is a financial instrument or a bet, and who gets to decide.
For Polymarket, Coplan’s critique of sportsbooks dovetails with this positioning. If prediction markets present tighter spreads, clearer rules and tradable risk, they can claim consumer value even as states question their legal basis. That narrative will face pressure tests as leagues, broadcasters and advertisers weigh reputational risk against engagement upside.
Capital, competition and a distribution shortcut
Investor interest mirrors the momentum. Polymarket is reportedly finalizing a $200 million round led by Founders Fund at a valuation north of $1 billion, according to Reuters, following a surge in activity during the 2024 U.S. election cycle. The platform’s event-driven liquidity — spanning politics, sports and geopolitics — is a draw for backers betting that tradable probabilities will become a consumer habit.
At the same time, incumbents are adapting. Daily fantasy leader PrizePicks struck a multi-year partnership with Polymarket to embed event contracts inside its app, offering sports, entertainment and cultural markets to millions of DFS users. PrizePicks also registered as a Futures Commission Merchant, signaling an intent to distribute federally regulated derivatives through exchange partners. For Polymarket, the deal is a distribution shortcut into an audience already accustomed to player props and rapid in-app engagement.
Competition remains heated. Kalshi, which operates under CFTC oversight, is battling legal challenges in multiple states over whether event contracts constitute wagering. Traditional sportsbook operators, meanwhile, are testing their own prediction-style products in jurisdictions where they lack betting licenses, blurring lines between markets and bets even as they pull back from industry groups over policy disagreements.
Legal gray areas and what to watch
The legal map remains messy. Some state regulators argue prediction markets are gambling in all but name; federal regulators have used exemptive relief and no-action letters to define narrow lanes for permissible trading. That duality created the opening Polymarket is exploiting with QCEX and brokered access, but it also ensures continuing courtroom and statehouse fights, especially around sports-linked contracts.
Key markers ahead include the scope of final product certifications; whether additional leagues follow the NHL’s lead; and if state-level enforcement intensifies against firms marketing event contracts locally. Commercial uptake through X and PrizePicks will show whether prediction prices can break out beyond crypto-native users. And fundraising outcomes will signal how much dry powder backers are willing to commit while rules are still in flux.
Against that backdrop, Coplan’s broadside at sportsbooks doubles as a differentiation strategy. Polymarket is betting that transparent pricing, tradability and federal supervision can win consumers — and regulators — over. The next phase will test whether that story holds as the platform moves from conference stages to U.S. app screens and live sports broadcasts.
