Polymarket Expands Into Parlays as SEC Reviews Prediction Market ETFs

Prediction market platform Polymarket is moving deeper into sports related contracts after filing plans to introduce parlay-style betting products in the United States, while regulators continue reviewing how the rapidly growing sector should be governed.

Polymarket Files to Launch Sports Parlays

Polymarket filed a self-certification request with the CFTC to introduce what it calls “combinatorial outcome contracts.” These products work similarly to parlays in sports betting, where users combine multiple predictions into one contract.

Under the proposal, every selected outcome must be correct for the contract to pay out. If one prediction fails, the entire contract settles at $0.00, even if remaining outcomes succeed.

The filing states that these products could begin trading no earlier than May 21, 2026. Since the filing uses the CFTC’s self-certification process, Polymarket is informing regulators of its intent to launch rather than requesting direct approval.

Prediction Markets Face Rising Sports Betting Scrutiny

Polymarket’s expansion comes as prediction markets face growing political and legal pressure, especially around sports contracts. State regulators and gambling operators argue these products resemble sports betting and bypass local gambling laws and tax systems.

The CFTC, however, maintains that prediction markets fall under federal derivatives law through the Commodity Exchange Act.

SEC Seeks Public Input on Prediction Market ETFs

At the same time, the U.S. Securities and Exchange Commission is reviewing how exchange-traded funds tied to prediction markets might operate.

SEC Chairman Paul Atkins said regulators are studying the risks and opportunities of new ETF structures, including event-contract products. He added that officials are gathering public feedback before deciding how such investment products should move forward.

Legal Battle Over Prediction Markets Continues

Congress and courts continue to examine the fast-growing prediction market sector, with many legal experts expecting the U.S. Supreme Court to eventually weigh in on whether sports-related prediction contracts fall under federal financial oversight or state gambling laws.