Polymarket Files to List Parlay-Style Contracts in U.S.

Polymarket, a federally regulated U.S. prediction market platform, has filed to add parlay-style contracts, known as Combinatorial Athletic Outcome Contracts (CAOCs), to its exchange. The filing with the Commodity Futures Trading Commission (CFTC) signals the platform’s intent to list these multi-leg sports contracts no earlier than May 21, 2026. Each contract is structured so that all included “legs” must settle successfully for a payout. If any single leg fails, the contract resolves to zero, mirroring traditional parlay mechanics.

As CoinDesk reports, CAOCs are priced at $1 per contract, with fractional pricing allowed, and include an early termination clause permitting the platform to close a position if a leg loses value before maturity. To ensure market integrity, participants under 18, as well as athletes, coaches, team staff, and their immediate family members, are barred from trading.

Alongside the submission, Polymarket requested permanent confidentiality for exhibits containing proprietary analysis and strategic materials. The platform argued public disclosure could reveal trade secrets and undermine its competitive position.

Background on Polymarket’s U.S. Return

Polymarket has been reestablishing its presence in the United States after a prolonged absence following a 2022 settlement with the CFTC, in which the company paid $1.4 million for failing to report derivatives trading. The platform acquired QCEX earlier this year, providing regulatory oversight and enabling legal operations for U.S. users. A phased rollout began in mid-May for Apple devices, ending a waitlist of over 1.4 million users.

During Polymarket’s absence, rival Kalshi captured a substantial share of the market, managing roughly 90% of sports event trading. Kalshi has also launched parlay-style offerings, branded as “combos,” and processed more than $83 billion in trading volume since early 2025.

Prediction markets in the U.S. have come under increasing scrutiny from both Congress and state regulators. Legal actions, including cease-and-desist orders and lawsuits, have targeted operators, arguing that sports-related event contracts resemble unlicensed gambling. The CFTC maintains that such contracts fall under federal oversight as derivatives under the Commodity Exchange Act. The Supreme Court is expected to address aspects of these regulatory conflicts in the future.

In parallel, the Securities and Exchange Commission is exploring the potential for exchange-traded funds tied to prediction markets. SEC Chairman Paul Atkins emphasized the need for transparency and public input as the agency considers implications for investor protections and market integrity.

Market Implications and Investor Interest

The CAOCs represent a significant expansion of Polymarket’s offerings beyond single-event contracts. Like traditional parlays, multi-leg contracts typically generate higher holds for sportsbooks, making them profitable products. By self-certifying these contracts, Polymarket formally informs the CFTC of its plans rather than requesting prior approval, aligning with existing federal regulatory frameworks.

As state lawmakers continue to examine the classification and taxation of prediction markets, Polymarket’s introduction of combinatorial contracts underscores the tension between federal oversight and state-level gambling regulation. The development positions the platform to compete more effectively in the rapidly evolving U.S. sports prediction market.