JPMorgan Ended Polymarket Banking Relationship Last Year

JPMorgan Chase ended its banking relationship with Polymarket in October 2025 because of regulatory concerns, according to a person familiar with the matter cited by Reuters. The development comes as prediction markets have expanded rapidly and attracted increased attention from regulators across the United States.

Regulatory Pressure Grows

Prediction markets allow users to buy and sell contracts tied to the outcomes of future events, including elections, sports competitions and other developments. Their popularity has grown significantly since the 2024 U.S. presidential election, but the industry’s expansion has also raised questions about whether some platforms operate too similarly to gambling services.

The source who described JPMorgan’s decision to Reuters spoke anonymously because the information was confidential. The report said the banking relationship was terminated in October of last year, with regulatory concerns cited as the reason. The disclosure adds to broader scrutiny facing companies operating in the rapidly growing prediction-market sector.

Polymarket Disputes the Characterization

Polymarket pushed back against the suggestion that its relationship with JPMorgan had been significantly weakened. A company spokesperson told Reuters that Polymarket maintains a close and active relationship with the bank across multiple entities, operational integrations and the handling of customer funds.

The spokesperson also pointed to Polymarket CEO participation in three JPMorgan flagship events during the previous year as evidence of the continuing relationship. The company said any suggestion that the relationship had fundamentally ended mischaracterizes its dealings with the financial institution.

Prediction Markets Face More Scrutiny

The dispute comes as regulators and lawmakers increasingly examine prediction markets. Supporters argue that these platforms can provide useful information about market expectations and public sentiment. Critics, however, compare some prediction contracts to gambling and warn about risks to consumers.

New York City Council Speaker Julie Menin recently accused major prediction-market companies of using marketing practices that could exploit young traders. Meanwhile, New York’s attorney general filed a lawsuit against Kalshi, a Polymarket competitor, alleging that its prediction-market operations violate state gambling laws.

JPMorgan’s reported decision highlights the complicated regulatory environment surrounding prediction markets. As companies seek to expand and attract more users, banks and financial institutions must weigh commercial opportunities against regulatory and compliance risks. The growing legal challenges could ultimately shape how the industry operates across the United States.

Source : reuters.com