TLDR
- JPMorgan told Polymarket to find a new banking partner in October 2025.
- Polymarket moved its operational banking services to another undisclosed lender.
- JPMorgan retained other commercial ties with Polymarket after ending banking services.
- New York City opened a probe into prediction market marketing practices.
- Baltimore sued Polymarket over claims that its sports markets violate local gambling laws.
JPMorgan Chase ended its primary banking relationship with prediction market platform Polymarket in late 2025 over regulatory concerns, adding another layer to the legal pressure surrounding the fast-growing sector. The bank told Polymarket in October that it needed to find another banking provider, and the platform has since moved those services to an undisclosed lender.
The decision did not end every business connection between the companies. Polymarket said it maintains “a close, active relationship with JPMorgan” through other entities and operational arrangements. JPMorgan also hosted Polymarket CEO Shayne Coplan at a private-client event in February 2026 and has shown interest in a potential underwriting role if the company pursues an initial public offering.
JPMorgan Banking Exit Followed Earlier CFTC Action
Polymarket’s regulatory history played a role in the banking concerns. The Commodity Futures Trading Commission reached a settlement with the platform in January 2022 over allegations that it offered event-based binary options without operating as a registered designated contract market or swap execution facility.
The settlement required Polymarket to pay a $1.4 million civil penalty and wind down markets that did not comply with US commodities law. The platform later returned to the US market under a changed regulatory environment, although questions around how prediction markets should be regulated have continued.
Prediction markets allow customers to trade contracts tied to future outcomes covering areas such as politics, sports, financial markets and current events. Operators argue that their platforms function as exchanges matching buyers and sellers rather than traditional sportsbooks, while several state and local authorities have challenged that position.
New York City Opens Probe Into Polymarket Marketing
New York City Council Speaker Julie Menin announced an investigation on August 12 into Polymarket, Kalshi, Coinbase and Gemini Titan. The inquiry focuses on whether prediction market advertising in the city uses false, deceptive, or abusive marketing practices, with particular attention on advertising aimed at younger consumers.
The council has requested information from each company about its marketing activities and plans to examine whether additional consumer-protection measures are needed. Menin said the council intends to determine whether stronger enforcement, public education, and other safeguards are required.
The investigation concerns allegations rather than established violations. New York City officials have not announced findings against Polymarket, and the inquiry remains in progress as the council collects information from the platforms involved.
Baltimore Sues Polymarket Over Sports Prediction Markets
Regulatory pressure increased again on August 13 when Baltimore filed lawsuits against Polymarket and Kalshi. The city alleges that the platforms offer sports wagering without licenses required under Maryland gambling laws.
Baltimore Mayor Brandon Scott described the businesses as companies “running sportsbooks without licenses,” reflecting the city’s legal position.
Polymarket and Kalshi maintain that prediction markets operate under a different regulatory framework from conventional sportsbooks, leaving that distinction at the center of several legal disputes.
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