Polymarket Investigates Alleged Corporate Espionage by Rival Kalshi

Prediction market operator Polymarket is reportedly investigating potential corporate espionage by rival company Kalshi, according to The New York Post.  

Polymarket has allegedly compiled an internal dossier documenting instances in which Kalshi launched similar products, campaigns, or announcements around the same time as it. The document reportedly includes comparisons of social media posts, product releases, and marketing initiatives by both companies. 

The Head of Marketing at Polymarket, Matthew Modabber, confirmed that the company is reviewing what it sees as a pattern of similarities between the two prediction market apps' activities. Other sources said one theory under consideration internally is whether information about upcoming launches may have been obtained from individuals connected to the company. 

Some employees also reportedly raised concerns about the proximity of offices operated by venture capital firm Paradigm, an investor in Kalshi. Paradigm rents office space across the street from Polymarket’s headquarters in Manhattan’s Soho district.  

According to sources, parts of Polymarket’s office are visible from the location, prompting discussions among employees about whether confidential information could be observed.  

Among the incidents under review is a February grocery promotion planned by Polymarket. The company had arranged a temporary grocery-themed event in Manhattan that was scheduled to begin on February 12. Days before the launch, Kalshi conducted its own grocery-related promotion in New York, distributing vouchers and highlighting prediction markets tied to food prices. 

Polymarket also questioned the timing of Kalshi’s plans to enter the perpetual futures trading market. According to sources, Polymarket intended to announce its own product on April 21. Shortly before that announcement, media reports emerged that Kalshi was preparing a similar offering.  

The dispute comes as both companies continue to attract significant investor backing while operating in an increasingly scrutinized regulatory environment. 

Polymarket CEO rejects concerns over market manipulation 

At the same time, Polymarket CEO and founder Shayne Coplan has recently dismissed concerns that prediction markets could encourage sports manipulation or insider trading, arguing that the scale of activity on such markets makes abuse unlikely. 

Speaking at Harvard University last week, Coplan was replying to questions about whether insiders could profit by influencing outcomes tied to prediction contracts. He said that individual sports markets usually involve relatively small amounts of money compared with traditional financial markets, so the incentive for insider trading was much smaller. 

Coplan also criticized the conventional sportsbook industry, arguing that prediction markets operate under a different model. He pointed to blockchain technology as a source of transparency, noting that transactions and positions can be viewed publicly. 

The comments came as regulators in several jurisdictions continue to examine prediction market operators. Spain recently blocked access to both Polymarket and Kalshi while investigating whether the platforms were operating without the required licenses. 

 Authorities cited concerns, including identity verification procedures and consumer protections. Similar restrictions have recently been imposed in India, Brazil, and Indonesia.