Polymarket’s average daily costs exceed $1 million—can it keep growing under regulatory pressure?

Gate News message: Market prediction suggests that Polymarket has seen a significant increase in its daily fees and revenue after recently adjusting its fee structure. In the days following the price adjustments on March 30, daily fees jumped from about $363,000 to more than $1 million. Revenue (keeping a portion after incentives are deducted) reached as high as $995,000 before later falling to around $899,000. The increase in fees is mainly driven by the platform expanding trading fees from crypto and sports to categories including finance, politics, economics, culture, weather, and technology, while continuing to keep geopolitical and world events fee-free.

This adjustment reflects Polymarket’s attempt to improve profitability and investor interest through trading activity amid increasing regulatory pressure in the U.S., Europe, and other regions. In Europe, Hungary and Portugal have already limited user access over concerns that the platform is an unlicensed gambling operation, and an Argentine court has also ordered a nationwide ban on Polymarket, citing insufficient identity and age verification. The platform has already been blocked in 33 countries/regions worldwide, and Kalshi reports that it has faced restrictions in 52 jurisdictions. In the U.S., at least 11 states have taken legal action against prediction markets, including restraining orders and drafting new regulations.

Despite regulatory challenges, Polymarket and Kalshi are still seeking expansion. Reports say both companies are preparing for a new round of fundraising, with valuations potentially reaching about $20 billion. In addition, on March 24, the two companies rolled out new trading restriction measures aimed at addressing issues related to accurate betting and market integrity, in order to curb the risk of insider trading.

Polymarket’s fee expansion and revenue growth show that even as the regulatory environment tightens, prediction markets are still looking for a balance between profitability and compliance. Going forward, the platform’s development will depend on how it maintains market activity and investor trust within global regulatory frameworks.