JPMorgan Dumps Prediction Market Over Regulatory Worries

JPMorgan Chase ended its banking relationship with prediction market platform Polymarket in October last year due to regulatory concerns. The news was previously reported by the Financial Times, but a person familiar with the matter confirmed it on Friday.

Prediction markets have grown rapidly since the 2024 U.S. presidential election and drawn attention from regulators at both the state and federal levels. A New York City Council Speaker accused major prediction market startups of using predatory marketing practices to exploit young traders, while New York's attorney general sued Polymarket rival Kalshi last month, saying its platform violates state gambling laws.

A Polymarket spokesperson disputed the claim that JPMorgan Chase had terminated its relationship with the company. 'We maintain a close, active relationship with JPMorgan across multiple entities, operational integrations, and material handling of customer fund flows,' they said in an email statement.