According to reports from CoinDesk, Polymarket saw historic action, receiving $1.1 billion in bets on Super Bowl LIX's outcome, where the Philadelphia Eagles defeated the Kansas City Chiefs 40-22.
Polymarket Analytics' data shows one of the biggest winners is a trader using the pseudonym 'abeautifulmind,' winning over $550,000 in profit on bets for the Eagles. This user had a pretty good run on Polymarket, netting more than $1 million in total – the lion's share coming from sports-related bets.
However, not all bettors experienced the same success level. Another trader, known as 'hubertdakid,' lost $718,633 betting against the Eagles. This loss adds to an overall deficit of $638,177 on the platform.
This pushes the total volume for sports-related contracts on Polymarket over $6 billion, per data from Polymarket Analytics, a sum well above even its U.S. election betting markets, which have a total volume of $5.2 billion.
Additionally, other sports betting platforms started releasing Super Bowl wagering numbers: Fanatics Sportsbook reported via an email that 53% of its moneyline handle and 54% of total bets came in on the Eagles at -120 odds, with a majority of bettors thinking the Eagles could win the game outright.
Of this, 77% of the handle was on the total, going over 48.5 points, and 74% of all bets placed anticipated a high score.
Polymarket Super Bowl betting keeps site in the spotlight
On platforms like Polymarket, users can participate in peer-to-peer betting with minimal restrictions compared to traditional betting operators.
The new type of wagering imposes various challenges on these novel businesses since authorities have questioned the legality and compliance of decentralized betting markets. For context, Polymarket isn't legal in the U.S., although similar platforms like Kalshi and Robinhood are.
The Commodity Futures Trading Commission (CFTC) took enforcement action against Polymarket in Jan. 2022 for failing to comply with U.S. regulations governing binary options and derivatives trading. The financial watchdog ruled the firm offered event-based contracts without the proper registration as a designated contract market or swap execution facility.
That led Polymarket to alter its business model to seek alignment with the CFTC's guidelines. However, it wasn't entirely successful. In November of last year, reports emerged the FBI raided the home of Polymarket's CEO, Shayne Coplan, seizing electronic devices as part of an ongoing inquiry.
Also, last year, the French National Gaming Authority initiated an investigation into Polymarket, leading to restricted access for French users. Regulators deemed the platform unauthorized to operate within France. Authorities in Singapore and Thailand took similar actions this year.
