Election betting exploded into view during the homestretch of the campaign after platforms like crypto-fuelled Polymarket placed the odds heavily in favour of Donald Trump, contrary to what pollsters were saying about a close race.
Now Polymarket is under investigation by US authorities for allegedly accepting bets from US-based users, when its business was supposed to be limited to overseas users.
On Wednesday, federal authorities raided the New York home of its CEO, Shayne Coplan and seized the 26-year-old’s phone, according to Reuters.
In a statement on X, Coplan said called it a “last-ditch effort to go after companies they deem to be associated with political opponents” and received support from Elon Musk.
Hundreds of millions of dollars were gambled on this election but new online gambling firms which employ so-called predictive market betting have come under scrutiny over alleged malpractice.
France’s gambling regulator is also investigating whether Polymarket complied with its laws after a mystery French trader bet big on a Trump win and stood to make $80 million.
