Polymarket seeks EU finance status as insider-trade promo row grows

Polymarket paid to promote clips on exploiting inside information, WSJ found, including ones featuring Adin Ross.

The hit

Polymarket is pressing EU & UK regulators to treat its event contracts as financial products, not gambling, according to a Financial Times report published on 22 September. A new Fern video has drawn fresh attention to a Wall Street Journal investigation reporting that Polymarket & marketing firm Virality paid accounts to amplify clips discussing exploiting inside information.

Why it matters

If Brussels grants financial status, Polymarket’s contracts could dodge gambling rules but face restrictions on selling binary payouts to retail clients, according to ESMA’s July statement. The insider-trading marketing claims complicate that pitch, especially with ESMA already warning prediction markets are “rife with insider trading” in its September risk assessment.

The record

Videos promoted on exploiting inside information	at least 19 clips (Wall Street Journal, June)
Ross clips flagged	at least 5 videos featuring Adin Ross (WSJ)
Alleged Ross deal value	multimillion-dollar promotional deal (person familiar with talks, WSJ)
Executive’s personal payments to creators	at least $350,000 via PayPal (Politico)
NYC Council probe opened	August (New York City Council)

What happens next

Watch for ESMA’s & the FCA’s response to Polymarket’s lobbying, & any update from the New York City Council’s investigation into prediction-market marketing.

Sources: Polymarket Wants EU Finance Status — Did It Pay to Promote Insider Trading?

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