GAMBITY
Gambity Markets Polymarket US begins parlay beta as Kalshi books 2…
Markets Analysis

Polymarket US begins parlay beta as Kalshi books 25 million in fees

Polymarket US, in the same period, processed its first parlay trade on August 5 and has since recorded $7.
Polymarket US begins parlay beta as Kalshi books 25 million in fees

Kalshi collected $25 million in parlay taker fees in the first sixteen days of August. Polymarket US, in the same period, processed its first parlay trade on August 5 and has since recorded $7.4 million in volume across 16,173 trades. The gap between those two numbers is the story.

The product Polymarket US is testing — Combinatorial Athletic Outcome Contracts, self-certified with the CFTC in May — allows users to combine up to ten legs in a single position. Pricing runs through a request-for-quote system: a trader submits a combination, market makers respond within a set window, the trader accepts or walks. It is not a simple interface, and it is not yet available through the Polymarket US app. The desktop platform has not broadly launched. Every dollar of that $7.4 million moved through a beta environment that most users cannot reach.

This matters because the parlay market, more than any other product in this space, rewards the platform that owns the liquidity. I have watched this dynamic in other instruments: when two competing products reach near-parity on contract design, the one with deeper market-maker relationships and faster quote response wins the volume, and it wins it permanently. The early mover does not have to be better — it has to be present when the habit forms.

Kalshi is present. Its maker fees for parlays are described as following its existing structure, generally lower than taker rates, which means the economics are set up to attract the market makers who set prices and absorb risk. Polymarket US, by contrast, is running a beta with no public app access and no broad desktop rollout. The offshore Polymarket platform, which began offering parlays in June during the World Cup, has the product experience. The US regulated entity is catching up to its own parent company.

The consensus read on Polymarket's parlay launch is that $7.4 million in beta volume is a promising start. I don't think that's where this lands. Beta volume in a closed environment is not a signal about market depth — it is a signal about how many market makers were willing to show up for a test. The number that matters is what happens when the product opens to retail flow and those market makers have to post quotes continuously rather than respond to individual requests. The RFQ structure is defensible for institutional instruments. For parlay contracts, where casual users want immediate pricing on a combination they just invented, it introduces friction that Kalshi's existing architecture does not have.

The broader context is that prediction markets hit $24 billion in monthly trading volume, a number that would have been implausible three years ago. At that scale, the parlay fee line becomes one of the most significant revenue questions in the sector. Kalshi's $25 million in sixteen days is a run rate that changes how anyone models this business. Polymarket US's entry is not symbolic — the platform has the brand, the user base on the offshore side, and a CFTC-certified product — but the structural advantage Kalshi has built in the first mover window is real and it compounds every week the beta stays closed.

The parlay market inside US-regulated prediction markets is not yet decided, but Kalshi's fee numbers from the first half of August represent the kind of early position that is expensive to dislodge.

Eleanor Ashworth
About the analyst
Senior Markets Analyst
Eleanor Ashworth spent fourteen years at one of the three largest strategy consultancies in the world before the financial crisis of 2008 proved her right about everything she had written in three internal memos that nobody wanted to read. She was not one of the people who was wrong.
Share this analysis
Frequently Asked

Combinatorial Athletic Outcome Contracts, self-certified with the CFTC in May, allow users to combine up to ten legs in a single position through a request-for-quote system. A trader submits a combination, market makers respond within a set window, and the trader accepts or walks. The product is currently in beta testing and not yet broadly available through the Polymarket US app or desktop platform.

Polymarket US processed its first parlay trade on August 5 and recorded $7.4 million in volume across 16,173 trades in the same period that Kalshi collected $25 million in parlay taker fees. Polymarket US's parlay beta remains unavailable through its app and has not had a broad desktop launch, meaning all volume moved through a restricted testing environment.

The parlay market rewards the platform that owns the liquidity, and when competing products reach near-parity on contract design, the one with deeper market-maker relationships and faster quote response wins volume permanently. Polymarket US is running a closed beta while Kalshi maintains continuous market-maker access through its existing fee structure, which generally sets lower maker fees to attract liquidity providers.

Polymarket US's request-for-quote structure introduces friction for casual users seeking immediate pricing on combinations they invent, whereas Kalshi's existing architecture does not require this response window. For parlay contracts where retail users expect instant quotes, this difference becomes significant as the product scales beyond institutional beta testing into open retail flow.

Continue Reading