Polymarket, long the leader in prediction market trading, is falling behind rival Kalshi as a series of missteps hinders its push to reach a crucial audience: US customers.
The setbacks are shaping a battle for the future of a fast-growing industry seeking to change gambling and finance by offering a new way to bet on just about anything.
Competition is intensifying. While Polymarket led the sector for years, its trading volume has recently been overtaken by Kalshi, which last month announced funding that valued it at $22 billion.
Kalshi has sought to align itself with regulators and large institutions, while Polymarket has stood out for defying regulatory and financial norms. It also counts the US president’s son among its advisers and investors.
