By Nupur Anand and Manya Saini
NEW YORK, Aug 14 (Reuters) - JPMorgan Chase terminated its banking relationship with prediction market platform Polymarket in October of last year, citing regulatory concerns, a person familiar with the matter said on Friday.
The source spoke on the condition of anonymity to discuss confidential information. The news was previously reported by the Financial Times.
Prediction markets, which allow people to wager on event contracts across a variety of topics including sports
and politics, have grown rapidly since the 2024 U.S. presidential election and drawn regulatory scrutiny at both the state and federal levels.
A Polymarket spokesperson said in an emailed statement: "We maintain a close, active relationship with JPMorgan across multiple entities, operational integrations, and material handling of customer fund flows."
"The strength of our relationship is highlighted by our CEO speaking at three of their flagship events in the past year alone. Any suggestion otherwise fundamentally mischaracterizes our relationship," the spokesperson added.
Proponents say prediction market platforms provide valuable insight into market sentiment, although critics liken them to gambling and point to potential risks.
New York City Council Speaker Julie Menin earlier this week accused major prediction market startups of using predatory marketing practices to exploit young traders.
New York's attorney general sued Polymarket rival Kalshi last month, saying its prediction market platform violates state gambling laws.
(Reporting by Nupur Anand in New York and Manya Saini in Bengaluru; Editing by Megan Davies and Edmund Klamann)
