Polymarket hit $1 billion in revenue and now 20 states want to shut it down

A prediction market that went from zero revenue to a billion dollar run rate in six months is signing deals with major sports leagues while state attorneys general line up to call it illegal gambling. Summary Polymarket crossed $1 billion in annualized revenue by late June 2026, just six weeks after lifting its U.S. waitlist, driven by taker fees on trading volume that did not exist before January 2026 The platform signed a multiyear deal with Major League Baseball worth up to $300 million, became the ATP Tour official prediction market provider with streaming rights to 20,000 matches, and expanded its Sportradar partnership to cover 300,000 matches across more than 20 leagues Twenty states are locked in active litigation against prediction market platforms, arguing that sports event contracts are illegal gambling under state law, while 44 state attorneys general signed a letter telling the CFTC it has no authority over sports prediction markets The CFTC has sued nine states to defend its exclusive jurisdiction over event contracts, but the Ninth Circuit Court of Appeals ruled on Aug. 28, 2026 that states can regulate prediction markets as gambling, setting up a likely Supreme Cour...