Polymarket reportedly raises $1B round with $300M from Trump Jr.-linked fund

Polymarket nears a $1 billion round

Prediction market operator Polymarket is raising a round of roughly $1 billion, with $300 million of that coming from 1789 Capital, an investment fund in which Donald Trump Jr. is a partner. The figures were first reported by The Wall Street Journal, citing unnamed sources, and relayed by TechCrunch, which says it has contacted Polymarket for comment.

The investment extends an existing relationship. According to TechCrunch, 1789 Capital previously put $200 million into Polymarket, which would bring its total commitment to around half a billion dollars if the new figure is confirmed. The reports do not name other investors taking part in the round.

A fund with political ties

1789 Capital is not a typical venture investor in profile. Beyond its connection to Donald Trump Jr., TechCrunch notes, the firm has a record of backing polarising technology projects, including the Enhanced Games — a sports competition that permits performance-enhancing drugs and was founded by veterans of the tech industry, widely nicknamed the "steroid Olympics."

That the money comes from a Trump-linked fund matters beyond the headlines, because prediction markets are currently the subject of a jurisdictional fight between Washington and the states.

States and federal regulators are fighting over the industry

Prediction markets have attracted growing regulatory attention as US states move to restrict how, or whether, residents can use them. TechCrunch reports that at least 20 states are engaged in litigation against prediction sites over the sports wagers they host.

The federal government has positioned itself on the other side of that fight. The Trump administration has argued that the Commodity Futures Trading Commission, rather than state governments, should be the industry's sole regulator, and the CFTC has sued at least nine states over their attempts to regulate the sector.

State prosecutors are resisting that framing. A coalition of 44 state attorneys general recently signed a letter arguing that the CFTC lacks the authority to regulate sports-related wagers on prediction sites.

Donald Trump Jr. has personally weighed in as well. The New York Times reported that he recently appeared at an event with conservative state attorneys general, where he described the prediction industry as already having "robust oversight" and characterised prediction sites as a tool "overseen by federal officials, not state attorneys general."

Why it matters

A reported $1 billion round would make Polymarket one of the best-funded companies in the prediction market category, and it signals that investors see a durable business here despite the unresolved legal environment.

The more consequential detail is who is writing the cheques. A fund connected to the Trump family is now among Polymarket's largest backers at the same time as the Trump administration is arguing that the industry should answer only to federal regulators, with the CFTC actively suing states that disagree. Whatever the merits of each position, that proximity is likely to colour how the round is read — as a bet not only on a product but also on a favourable regulatory outcome.

The capital also gives Polymarket staying power for the fight ahead. With dozens of states suing over sports wagers and the CFTC suing states in return, the question of who governs prediction markets remains open. A billion-dollar balance sheet means the company can afford to contest, and wait out, whatever the courts ultimately decide.