To Counter Parlays, Polymarket Looks to Offer Multi-Leg Contracts
Polymarket is bidding to add multi-leg contracts to its range of services on its prediction market platform.
The prediction market leader has applied to the Commodity Futures Trading Commission (CFTC) for certification of the product.
Until now, Polymarket contracts have covered only a single outcome, such as a sporting event or a political event. These new contracts will resolve if all legs mature accurately.
At a Glance:
- Combinatoric Athletic Outcome Contracts (CAOCs) first multi-leg product at Polymarket
- Every leg of the contract must resolve for the trade to win
- CAOCs only available to 18+ players on the Polymarket platform
- Restrictions on athletes, coaches, and insiders from trading
Multi-leg contracts set to take on sportsbooks
Polymarket already dominates prediction markets in the U.S, along with Kalshi.
While many of Polymarket’s contracts center on politics and entertainment, there is also a sizeable sports element.
Prediction markets like Polymarket are keen to take on state-regulated sportsbooks, which enjoy a wider reach in the U.S. Regulated online sportsbooks in over 30 states can accept parlays from residents of those states.
Polymarket is federally regulated by the CFTC to offer derivatives-style trading online. However, some states have fought back, arguing that prediction markets offer sports betting without proper licensing.
How CAOCs will work
So-called Combinatoric Athletic Outcome Contracts (CAOCs) will look and feel like sportsbook parlays.
The Combinatoric Athletic Outcome Contracts (CAOCs) would allow traders to combine multiple markets into a single ticket. Every leg would have to settle at $1.00 for the whole CAOC to pay out.
According to the product self-certification request issued by Polymarket, certain individuals are prohibited from trading. These include sportsmen and women, coaches of relevant teams, and family members.
Polymarket joins Kalshi on the parlay trail
Kalshi introduced its own multi-leg contracts last year, dubbed “combos.” However, Polymarket has been playing catch-up a little since only coming back online in the U.S. in 2025.
With FIFA World Cup prediction markets just around the corner, Polymarket is obviously keen to exploit its sports trading platform to the full extent. However, it could well invoke even more ire among states that object to prediction markets muscling in.
States continue their war with the CFTC
The rapid expansion of prediction markets in the U.S. continues to attract attention from states and the Senate alike.
Last week, the Senate Subcommittee on Consumer Protection convened a special hearing on prediction markets.
There were concerns from figures such as subcommittee chair Marsha Blackburn that prediction markets function “like traditional sports betting” without the “enforcement of state regulators.”
Already this year, the CFTC has sued states that have tried to impose their own sports betting regulations on prediction markets.
This month, the American Gaming Association (AGA) issued the State of the States report, slamming prediction markets over state regulation and taxes.
With Polymarket now introducing its own form of parlays, sportsbooks may feel even more grieved about the encroachment of prediction markets.
