The Wall Street Journal and Bloomberg reported on the 31st of last month, local time, that 1789 Capital, where Donald Trump Jr., the eldest son of U.S. President Donald Trump, serves as a partner, is making an additional investment of about 300 million dollars (approx. 410 billion KRW) in the prediction market platform Polymarket.

Sources reported that Polymarket is conducting a new funding round led by venture capital firm 1789 Capital with a target valuation of 21 billion dollars (approx. 28.8 trillion KRW).

Polymarket is scheduled to raise 1 billion dollars (approx. 1.37 trillion KRW), with 1789 Capital reportedly investing 300 million dollars of that amount.

1789 Capital has previously invested 200 million dollars in Polymarket.

With this investment, 1789 Capital becomes a major investor in Polymarket.

The largest investor is Intercontinental Exchange (ICE), which holds a 22% stake.

Polymarket has sparked controversy by offering sports betting services along with its competitor Kalshi.

While U.S. prediction market platforms are gaining popularity, disputes are also arising over their legal status and regulatory jurisdiction.

While individual states argue that prediction markets should be regulated by state authorities, the federal agency, the U.S. Commodity Futures Trading Commission (CFTC), counters that it falls under its jurisdiction.

The CFTC filed lawsuits in federal district courts against attempts by Illinois and Connecticut to ban sports and election-related betting on platforms like Kalshi, claiming it infringes upon federal authority.

The CFTC regards transactions on these platforms not as simple gambling, but as a type of derivative known as a "swap" contract.

Accordingly, it asserts that it holds exclusive regulatory authority under federal law.

Its stance is that it is inappropriate for state governments to apply general gambling-related laws to "event contracts."

Last week, a federal appeals court sided with the state governments in this dispute.

Consequently, many observers expect the issue of prediction market regulation to be ultimately decided by the U.S. Supreme Court.

Trump Jr., a partner at 1789 Capital, also serves as an advisor to both Polymarket and Kalshi.

(Photo: AP, Yonhap News)