Polymarket controls 93% of political prediction markets, and regulators have noticed

In the world of political prediction markets, there’s Polymarket, and then there’s everyone else. The crypto-based platform founded by Shayne Coplan now commands an estimated 93% of all political prediction market volume.

The numbers tell a lopsided story. In a recent week, Polymarket recorded roughly $507 million in political market volume. Its closest competitor, Kalshi, managed $16.8 million over the same period. That’s a 30-to-1 ratio.

How Polymarket built a political betting empire

Politics accounts for 32% of Polymarket’s total volume. On Kalshi, that figure is just 4%.

Polymarket International, the offshore version that blocks US users, pulled in $9 billion in volume in April 2026 alone. Its US-regulated counterpart, which operates under CFTC approval, generated only $1.3 billion during the same month.

The combined monthly trading volume across both Kalshi and Polymarket has surged to nearly $24 billion as of April 2026. That’s up from under $5 billion in mid-2025.

Kalshi leads in overall volume and open interest when you include sports and domestic event contracts, and operates within a US regulatory framework.

The regulatory shadow

The CFTC announced an extensive investigation into Polymarket in June 2026, focused on broader concerns about insider trading within political and geopolitical contracts on the platform.

This isn’t Polymarket’s first brush with regulators. The platform paid a $1.4 million fine back in 2022. Polymarket’s dominance in political markets is built on its international, largely unregulated platform. The US version, operating under CFTC rules, generates a fraction of the volume.

What this means for investors and traders

The rapid expansion of prediction market volume, nearly quintupling in under a year, signals genuine demand for instruments that let traders express views on geopolitical and macroeconomic outcomes.

For crypto-native traders, Polymarket’s dominance reinforces a familiar pattern. Offshore platforms with fewer restrictions tend to win on volume and liquidity. The same dynamic played out with centralized exchanges like Binance before regulatory pressure forced structural changes, ultimately involving billions in fines and a fundamental restructuring of how the exchange operated.

Kalshi’s strategy of building within regulatory guardrails could pay dividends if Polymarket faces enforcement headwinds. The CFTC has shown willingness to pursue offshore entities that touch American markets, even indirectly.