Susquehanna-Backed Smarkets Enters U.S. Prediction Market Race

The profitable UK betting exchange has filed for CFTC licenses, joining Polymarket, Kalshi and Robinhood in a market that saw $3.1 billion bet on one event.

Published on Mar. 9, 2026

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Smarkets, the second-largest betting exchange in the United Kingdom, has filed for both a Designated Contract Market and Designated Clearing Organization license with the Commodity Futures Trading Commission, putting the company on the same regulatory path as Kalshi. Founded in 2008 by American Jason Trost, Smarkets has processed approximately $50 billion in lifetime trading volume, handles around $3 billion annually, and is profitable. The company is backed by Susquehanna Growth Equity.

Why it matters

The prediction market space in the U.S. has become increasingly crowded, with players like Polymarket, Betr, Robinhood, and Crypto.com all vying for a piece of the action. Smarkets' entry into the market represents another major player looking to capitalize on the growing popularity and volume of prediction markets, which saw $3.1 billion bet on the 2026 Super Bowl alone.

The details

Smarkets is seeking to differentiate itself by offering a hybrid model that combines the pricing advantages of an exchange with the more user-friendly interface of a traditional sportsbook. The company also operates a market-making firm to provide liquidity across its events. However, the prediction market space is facing new regulatory scrutiny, with Israel filing the world's first criminal charges for prediction market insider trading and the U.S. Congress considering legislation to make trading on classified government information a federal crime.

  • Smarkets filed for CFTC licenses in March 2026.
  • The CFTC has 180 days to respond to Smarkets' DCM application, though the timeline can stretch longer in practice.
  • Smarkets aims to go live in the U.S. by the end of 2026.

The players

Smarkets

The second-largest betting exchange in the United Kingdom, founded in 2008 by American Jason Trost. Smarkets has processed approximately $50 billion in lifetime trading volume, handles around $3 billion annually, and is profitable.

Jason Trost

The American founder and CEO of Smarkets, who has spent the past 12 years building the company from London.

Susquehanna Growth Equity

The growth investing arm of quantitative trading firm Susquehanna International Group, which led a $30 million Series B investment in Smarkets.

Polymarket

A prediction market platform that was acquired by Intercontinental Exchange, the parent company of the New York Stock Exchange, in a $2 billion deal in 2025.

Kalshi

The first CFTC-regulated prediction market, which has a regulatory head start over newer entrants.

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What they’re saying

“The Betr model on Polymarket or Robinhood on Kalshi, that's the broker model. I think long-term sports betting will be replaced by that model. But the underlying exchange, I think there'll be three players at the end of this.”

— Jason Trost, Founder and CEO, Smarkets (Forbes)

“We have a sportsbook that takes the pricing advantage of an exchange, but puts it into an interface that everybody likes.”

— Jason Trost, Founder and CEO, Smarkets (Forbes)

What’s next

Smarkets expects to receive a response from the CFTC on its DCM application within 180 days, though the timeline could stretch longer in practice. The company aims to go live in the U.S. prediction market by the end of 2026.

The takeaway

Smarkets' entry into the crowded U.S. prediction market race highlights the growing interest and competition in this space, as established players like Polymarket and Kalshi face new challengers looking to differentiate their offerings. The regulatory environment is also evolving, with increased scrutiny on potential insider trading and other issues, which could shape the long-term landscape of the industry.