Polymarket Plans In-House Trading Desk That Bets Against Users
Polymarket is preparing to launch an in-house trading desk that would take the opposite side of customer bets, echoing a highly controversial model already used by rival prediction platform Kalshi, according to a Bloomberg report. The company has reportedly approached professional traders and sports bettors to staff the new market-making unit, but has declined public comment on the effort.
The move comes as Polymarket readies its full return to the United States after winning key regulatory relief from the Commodity Futures Trading Commission (CFTC). The startup previously paid a $1.4 million penalty in 2022 for running an unregistered derivatives exchange and was forced to block U.S. users.
Kalshi already operates an internal market maker, Kalshi Trading, which provides liquidity by taking the other side of user positions. Executives say the in-house desk improves pricing and execution, but critics argue it creates a built-in conflict of interest and makes the platform look more like a traditional sportsbook than a neutral prediction venue. A recent proposed class action lawsuit claims Kalshi’s market maker sets lines that put customers at a disadvantage. Co-founder Luana Lopes Lara has dismissed the case as a smear campaign and insists the unit is not profitable and receives no special treatment.
Polymarket’s expansion into market-making follows a busy year. In December, the CFTC issued a no-action letter covering QCX LLC and QC Clearing LLC, entities Polymarket bought for $112 million to secure a regulated designated contract market and clearinghouse. The decision effectively gave CEO Shayne Coplan “the green light” to relaunch in the U.S. after an FBI raid on his Manhattan home in 2024 and years of offshore growth, including about $6 billion in wagers in the first half of 2025.
Both Polymarket and Kalshi rely on liquidity providers and are now courting big names like Jump Trading, Susquehanna International Group and Mike Novogratz’s Galaxy Digital. Supporters say this makes prediction markets more efficient. Critics counter that as platforms build “house-style” trading desks, the line between forecasting and gambling is rapidly disappearing.