Polymarket Considers In-House Market-Making Desk to Trade Against Users, Raising Concerns
Polymarket is exploring the creation of an in-house market-making desk that would trade directly against its users, a move potentially aligning the platform with sportsbook business dynamics and raising concerns over its neutrality.
According to Bloomberg, Polymarket has engaged in discussions with traders and sports bettors about building such a desk. Similar strategies have been pursued by other platforms like Kalshi.
The proposed plan involves using a request-for-quote (RFQ) based system where the in-house desk would price and fill parlays. This approach requires significant capital and could give the house an edge over customers.
Harry Crane, a statistics professor at Rutgers University, has argued that this strategy is unlikely to deliver meaningful revenue and carries public relations, legal, and trust risks. He referenced past controversies involving Kalshi and NoVig to illustrate potential pitfalls.
Critics warn that establishing an in-house desk could damage Polymarket’s reputation as a market-driven probability gauge and undermine trust, especially during sensitive, high-profile events such as elections.
Concerns have also emerged about data access, the potential for front-running or advantages in order flow, and whether the desk would trade ahead of customer flows, creating conflicts of interest.
Polymarket did not immediately respond to CoinDesk’s request for comment. Analysts view the plan primarily as a monetization strategy that may come at the cost of the brand’s integrity and user trust.
