The CEO of prediction markets platform Polymarket says a federal probe into the company has been dropped, marking more momentum in the event contracts space, which has faced controversy over sports offerings that appear very similar to sports betting.

Shayne Coplan, founder and CEO of Polymarket, posted on social media Tuesday that the company has “been cleared of any wrongdoing” after an investigation that he says began eight months ago, when “the FBI broke down my door at 6am and took all my computers and phones, looking for anything that could imply foul play.” 

Polymarket had reportedly been under two federal probes—one from the U.S. Department of Justice and another from the Commodity Futures Trading Commission. Both were reportedly centered on the question of whether Polymarket was accepting trades from U.S.-based users, which it is not allowed to do under a 2022 settlement with the CFTC. Polymarket, like Kalshi, offers what are known as future event contracts; users can “trade” on the outcome of future events across a range of areas, including controversial ones like political elections and sports.

U.S. users are not allowed to trade on the Polymarket platform, while similar offerings from Kalshi are allowed, because Kalshi went through the process to self-certify with the CFTC.

Coplan’s post referenced only one probe, although Bloomberg and The New York Times each reported Tuesday that Polymarket had received notice from both federal regulators stating the company had been cleared.

A representative for the DOJ declined to comment, and a representative for the CFTC did not immediately respond to a request for comment. Polymarket could not immediately be reached.

The apparent end of the probes could mean that Polymarket—which in June entered into an agreement to become the official prediction markets partner for X—is eventually allowed to offer its services to U.S. users, as the settlement it reached came under President Joe Biden’s administration.

The news represents yet another positive sign for the broader prediction markets industry as it seeks mainstream legitimacy in the U.S., especially ahead of football season, which is by far the busiest time of year for sports gambling. Industry sources say there will be a flurry of activity, whether by M&A or strategic partnerships, as football season approaches. Front Office Sports recently reported that DraftKings is in talks to buy Railbird Exchange, an upstart prediction markets platform that last month gained federal licensure. Before that, FOS reported that FanDuel has discussed a deal with Kalshi that would include various betting efficiencies.

Additionally, last month Kalshi announced a $185 million Series C funding round valuing the business at $2 billion, one day after Bloomberg reported that Polymarket had amassed more than $200 million at a $1 billion valuation.

Gaming boards in states with legal sports betting have protested the advent of prediction markets, which aren’t subject to the same regulations and taxes as sportsbooks.

Kalshi, which appears to have support from the current administration—last year it hired Donald Trump Jr. as a special advisor—has been the prediction markets platform most in the public eye. That’s because it responded to cease-and-desist orders from regulators in at least seven states with lawsuits against regulators in three: Nevada, New Jersey, and Maryland. Kalshi scored early but significant victories in the Nevada and New Jersey suits, and all the cases remain ongoing.

Heat guard Terry Rozier remains under federal investigation for suspicious gambling behavior during his time with the Hornets, his attorney confirmed to Front Office Sports. 

The news was first reported by longtime NBA insider Chris Haynes after ESPN’s Shams Charania caused confusion during a June appearance on The Pat McAfee Show by saying Rozier “as of right now has been cleared,” and “there’s nothing really active with him right now.” Charania also said during the appearance that an NBA spokesperson had issued a statement the day before saying the league was cooperating with federal prosecutors: “This is a federal matter now,” Charania said.

Following Charania’s comments, it was widely reported that Rozier was off the hook for betting-related allegations. But that’s not the case. Rozier was embroiled in two separate but related investigations, one from the NBA and another from the U.S. District Attorney’s Office for the Eastern District of New York. A person familiar with the matter tells FOS that Charania was referring to the NBA’s investigation. 

In January, NBA spokesperson Mike Bass said the league “did not find a violation of NBA rules” through its investigation into Rozier, although he added “we are now aware of an investigation by the U.S. Attorney’s Office for the Eastern District of New York related to this matter and have been cooperating with that investigation.”

Rozier’s attorney, Jim Trusty, told FOS in an email that if and when Rozier is cleared in the federal probe, it’s unlikely even Rozier himself will be informed: “Federal investigations can take years to complete, and the government rarely lets the subject of an investigation know whether or not they have been cleared of allegations of wrongdoing.”

Trusty also said “to date, Mr. Rozier has not been charged with any crimes, nor has he been characterized by prosecutors as a target.” He added that the NBA cleared Rozier in 2023, “and we hope and expect that the prosecutors in EDNY will reach the same conclusion this year.”

Rozier’s current status comes weeks after Pistons guard Malik Beasley became the third-known player to be tied to a gambling investigation. Beasley is under investigation by the Eastern District of New York—the same office involved in the Rozier probe—for gambling allegations related to NBA games and prop bets during the 2023–24 season when he played for the Bucks. Former Raptor Jontay Porter was banned for life by the NBA in April 2024 after he “disclosed confidential information about his own health status” to a bettor who then used the information to gamble on Porter’s play. 

Status With the Heat

After The Wall Street Journal first reported Rozier was under federal investigation on Jan. 30 for alleged point shaving related to games when he was with the Hornets, he played the next game for the Heat against the Spurs. 

“His status is still the same,” head coach Erik Spoelstra said the day after news of the investigation broke.

The NBA has not taken any action against Rozier, and the league declined to comment further than what Bass had said in January.

Rozier is set to earn $26.6 million next season with the Heat in the final year of a four-year, $96 million contract he signed with the Hornets in 2021. Rozier has yet to be waived, released, or traded since it was reported he was under investigation. He is eligible to play for the Heat for the time being.

Link to Other Investigations? 

NBA commissioner Adam Silver was asked about the investigations into Rozier and Beasley on Tuesday after meeting with the league’s Board of Governors and said the NBA is cooperating with federal authorities. 

“I think we’re combining a few different investigations,” Silver said. “I would say any ongoing law enforcement efforts we are, of course, cooperating with and those investigators have resources at their disposal that a league office doesn’t when we do investigations, so we’re cooperating in every way.”

The investigations of Porter, Beasley, and Rozier have all been undertaken by the Eastern District of New York. Porter was charged, while Beasley and Rozier have not been. Rozier’s and Porter’s cases appear to be linked, according to the WSJ, but it’s yet to be confirmed if Beasley’s is too, or if it’s separate. 

Silver was one of the biggest early advocates to legalize sports gambling and on Tuesday he reiterated that it was the right decision, but expressed frustration that sports betting hasn’t been made legal on the national level (sports betting is legal in 38 states). 

“What we’re seeing now in some of the investigations you’re referencing is operational data, which causes in many cases, betting companies or independent agencies who are overseeing this betting activity to raise flags and say, ‘What’s happening here?’” Silver said. “I think the issue is if you didn’t have that legalized structure, what would otherwise be going on that went undetected?”

The International Tennis Hall of Fame (HOF) has rejected a $10 million donation from billionaire hedge fund manager Bill Ackman, Front Office Sports has confirmed. 

A spokesperson for the Hall of Fame confirmed the decision on Tuesday, saying only: “We can confirm, yes,” in response to a request for confirmation. “No further comment at this time.” 

The donation—which Ackman publicly pledged in a lengthy social media post over the weekend—was announced just days after his wild-card entry into the Hall of Fame Open drew widespread criticism from players, fans, and tennis players alike. 

Ackman, 59, played a doubles match alongside former pro Jack Sock on July 9 at the ATP Challenger event in Newport, R.I. The pair lost in straight sets, but the 67-minute match was all it took to spark backlash within the tennis community, particularly from former US Open champion Andy Roddick. 

Roddick unloaded on Ackman’s performance in his Quick Serve podcast, calling the match “a disaster,” “beneath the Hall of Fame,” and “the biggest joke I’ve ever watched in professional tennis.” 

Roddick questioned how Ackman secured the wild card, although the Hall of Fame confirmed to FOS that he was part of the official wild-card entry in partnership with Sock.

In an apparent attempt at damage control, Ackman posted a lengthy defense of the match on X/Twitter, announcing a $10 million endowment to support youth programs and operations at the HOF. 

A letter sent to Hall of Fame members and the HOF Board, which FOS obtained, said the donation was rejected to avoid “any perception of impropriety.” 

“In hindsight, we would not make this decision again,” it added, referring to Ackman’s wild-card entry.

On Wednesday night, Ackman responded to the rejection with another lengthy post. “In a world where no good deed goes unpunished, I will do my best to attempt another good deed for the sport of tennis,” he wrote, citing the Hall of Fame’s decision as being “for ‘optics,’ whatever that means.” 

Ackman also announced a new $10 million donation to the Junior Tennis Champions Center in Maryland.