PrizePicks, a leading daily fantasy sports operator in North America, has entered into a partnership with Polymarket. This collaboration aims to expand PrizePicks' offerings into the prediction-markets space, potentially creating new revenue streams beyond its existing fantasy sports business.
The partnership will see Polymarket's event contracts integrated directly into the PrizePicks application. This integration will enable users to place predictions on the outcomes of a wide range of events, including sports, entertainment, and cultural happenings, as announced by the companies on Tuesday.
Shayne Coplan, founder and CEO of Polymarket, expressed optimism that this collaboration could introduce millions of PrizePicks users to the burgeoning prediction-markets ecosystem.
Both companies indicated that the launch of this integrated offering will coincide with Polymarket's re-entry into the United States market. This move signifies a renewed effort to introduce regulated prediction trading to American consumers.
For PrizePicks, this strategic expansion represents a significant step beyond its traditional daily fantasy contests. The company is positioning itself to enhance user engagement and differentiate itself in the increasingly competitive sports gaming industry.
Polymarket distinguishes itself in the event-outcome prediction sector through its decentralized architecture, which is built on the Polygon blockchain. This design allows markets to operate with transparency and without the need for a central intermediary.
The platform gained considerable attention during the 2024 US presidential election cycle. Its trading activity and market odds accurately predicted Donald Trump's return to the White House, an outcome that was not reflected in traditional polls at the time.
Prediction Market Growth Under Scrutiny
Polymarket's rapid expansion has not been without its share of controversies. A recent academic paper authored by researchers from Columbia University highlighted that a substantial portion, up to 60%, of the platform's trading volume may have been artificially inflated. This inflation was primarily attributed to wash trading, a practice where the same entity repeatedly engages in buying and selling an asset to simulate market activity and liquidity.
The researchers stated that they identified extensive wash trading on Polymarket beginning in July 2024. This suggests that a significant amount of the observed increase in trading volume may not represent genuine market participation.
Wash trading allegations are not exclusive to prediction or betting markets; similar practices have been documented across the broader decentralized finance (DeFi) ecosystem. A report published in 2023 by Solidus Labs identified widespread instances of wash trading on various decentralized exchanges.
More recently, reports from traders and analysts have indicated an increase in suspected wash trading activity on decentralized exchanges operating on the Solana network.

