JPMorgan cuts Polymarket ties after Dimon floated prediction bets

JPMorgan Chase has reportedly closed Polymarket’s bank account over regulatory concerns. This comes months after chief executive Jamie Dimon said the bank might one day sell prediction-market products of its own.

This contrast points to an emerging issue for Wall Street. Banks recognize that they can make money with the prediction market, where individuals invest in events like elections, sporting events, and others using real money. But entering a market like this implies taking on some legal risks. JPMorgan seems to want none of Polymarket’s involvement, even if the CEO has thought about doing so himself.

A CEO who was curious, then cautious

Dimon conveyed on the CBS Evening News to Tony Dokoupil late in March that it was “possible one day” to offer prediction market services at JPMorgan. He, however, clarified that the bank would not engage in predicting events in sports or politics and would keep “strict rules around insider information.”

When questioned on whether prediction markets represented gambling or investing, Dimon asserted that most customers saw it as “more like gambling.”

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