Polymarket, a New York-based prediction market operator, has cut staff and ended some contractor relationships as it reorganizes after legal setbacks and ceding its lead to Kalshi, a US-based prediction market platform.

The company confirmed that an email circulated on X about a company-wide reduction in force this month was authentic, but declined to disclose how many employees or contractors were affected.

Its legal troubles include a January 2022 Commodity Futures Trading Commission order to pay US$1.4 million for unregistered off-exchange activity.

US authorities had begun investigating the company in June 2026.

Industry trackers show monthly trading volume for both platforms.

Polymarket received CFTC approval in November 2025, enabling intermediated US market access, and opened a US-regulated exchange earlier this year alongside its blockchain-based platform.

Separately, in May 2025, the CFTC moved to drop its appeal in Kalshi’s event contracts case.

🔗 Source: Bloomberg

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