Polymarket has started reviewing whether Kalshi had access to sensitive information about its products, staff, or office activity, according to a New York Post report published on June 3. The report said Polymarket has built an internal file called “copycat.”
What’s on the “Copycat” File
The file reportedly contains around a dozen examples of cases deemed suspicious by the company. These include similarities in product design, overlapping launch dates, and promotional tactics that Polymarket felt were “too close” to its own initiatives.
Polymarket’s marketing lead, Matthew Modabber, told The New York Post that Polymarket had detected a pattern of such activities. He noted that there had been “a couple too many coincidences.”
Kalshi dismissed the claims in comments reported by The New York Post.
Office Location Adds a Strange Detail
One element of the conflict revolves around office proximity in New York City. As reported, some members of Polymarket’s team were concerned regarding Paradigm, a venture capital firm linked to Kalshi. Paradigm reportedly rents office space across the street from Polymarket’s Soho office.
The issue was not just related to similar ideas in the market. Sources cited in the Post report indicated that there were concerns regarding whether some of Polymarket’s office area, such as their computer screens, might be visible across the road.
The report also noted that Polymarket had contemplated the possibility of an insider leak. There has been no confirmation in public sources regarding the existence of a mole. No regulator, prosecutor, or court has publicly accused Kalshi of corporate espionage in relation to the issue.
The difference between the two is crucial. As far as the case stands now, it revolves around allegations and speculations.
Prediction Markets Face a Tougher Spotlight
Kalshi and Polymarket are among the most recognizable companies in the prediction markets field. They both exist in a space that is rapidly growing, particularly in politics, sport, finance, and topical matters.
Their growth has brought more regulatory scrutiny. Lawmakers, regulators, and gambling groups are now asking how these platforms fit under state gambling laws.
Kalshi has also appeared in separate recent reporting about suspicious trading by former U.S. Representative George Santos. According to Reuters, U.S. authorities were investigating whether Santos engaged in potential insider trading on Kalshi contracts tied to his own State of the Union attendance.
On its part, Polymarket has been involved in controversies regarding access issues, political markets, and event contracts in the past. Thus, the competition is taking place in an environment where credibility plays a crucial role.
Product Speed Is Now a Competitive Risk
Quick launches are common practice in prediction markets. The platforms operate based on news cycles, discussions among the public, elections, legal matters, sports, and other global events. A couple of hours could affect the market.
In this regard, product timing becomes a business weapon. Copying claims are also getting harder to prove. Competitors may notice a trend simultaneously and react accordingly.
Nonetheless, the case of Polymarket and Kalshi demonstrates how volatile the market currently is. Brand credibility in a young industry hinges on speed, liquidity, and transparent operations.
Practical Takeaways
Prediction market operators are no longer fighting only for users and contracts. They also need stronger internal controls, tighter staff access rules, and clear records of how product ideas move from planning to launch. Without that, normal rivalry can turn into a reputational problem very quickly.
