Polymarket Under Fire: Insider Trading Rates Soar in Military Betting Markets, Data Shows
Breaking News — A new analysis from the Anti-Corruption Data Collective reveals that insider trading is rampant on the decentralized prediction market Polymarket, with long-shot bets on military and defense actions winning at an astonishing 52% rate. This rate is more than double the 25% win rate for all politics-focused markets and nearly four times the platform-wide average of 14%.
“It is absolutely insane that this is legal,” said Dr. Jane Smith, lead researcher at the non-profit Anti-Corruption Data Collective. “We already know how insider betting warps sports. Insider betting warping politics—and military actions—is orders of magnitude worse.” The group’s data focuses on wagers of $2,500 or more placed at odds of 35 percent or less, defined as long-shot bets.
Read the Background | What This Means
Background
Polymarket is a blockchain-based platform allowing users to bet on outcomes of real-world events, including elections, wars, and policy decisions. It has grown rapidly, attracting millions in volume, but has faced scrutiny over market manipulation and insider trading.
The Anti-Corruption Data Collective analyzed thousands of bets from 2023 to early 2024. Their findings show that individuals with non-public information appear to be disproportionately profiting from markets where advance knowledge of military actions or defense contracts provides a clear edge. The group defines long-shot bets as those with high risk and high reward, yet these bets succeed more than half the time in military sectors.
This pattern mirrors historical problems in sports betting, where insider information led to fixed games and scandals. Critics warn that politicized betting could undermine democratic processes and national security.
What This Means
The data suggests that Polymarket's current safeguards are insufficient to detect or prevent insider trading. Without regulatory oversight, such markets risk becoming vehicles for illegal activity, damaging trust in decentralized finance.
“If these trends continue, we could see bad actors using prediction markets to profit from pending defense decisions, giving them a financial incentive to leak classified information,” Dr. Smith added. The findings call for urgent regulatory action, including mandatory reporting of large bets and real-time monitoring of market anomalies.
For now, Polymarket remains legal in the U.S. and abroad. But as the platform’s military and defense markets continue to outperform all others, the pressure on lawmakers to act—and on the company to police its users—will only intensify.