Polymarket Removes Wager Contract on Cornell Accused Students' Fate
The prediction market platform cited user feedback and a desire for scrutiny in removing a contract that allowed wagers on felony charges for students accused of rape.
Polymarket has removed a prediction market contract that allowed users to bet on whether any of the seven men accused of raping a Cornell University student in 2024 would be charged with a felony sex crime. The contract, which was available from September 30 and was scheduled to close on January 31, had garnered over $450,000 in volume before its removal from Polymarket's international platform.
A Polymarket spokesperson stated that the company's primary goal is to provide objective insights into significant questions. "This market addressed whether the government would take action — a process that deserves scrutiny, particularly in a case of such serious concern," the spokesperson said. "That said, we believe in the wisdom of crowds, have heard them loud and clear, and removed the market.”
Polymarket's U.S. exchange operates under the regulation of the U.S. Commodity Futures Trading Commission, which prohibits trading related to activities unlawful under federal or state law. Front Office Sports initially reported on the contract.
The contract drew criticism, with some directing outcry towards its celebrity promoters. LeBron James, a star for the Philadelphia 76ers, has an endorsement deal with Polymarket and appeared in a recent commercial for the platform alongside other celebrities including Derek Jeter, Eli Manning, Sue Bird, Craig Robinson, John Leguizamo, and Alexandra Daddario. Representatives for James and the other celebrities, as well as for Spike Lee who also appeared in the commercial, did not immediately respond to requests for comment.
Polymarket also holds partnerships with major sports leagues and organizations, including the NHL, Major League Baseball, Major League Soccer, the UFC, and the ATP Tour. Messages seeking comment were sent to each of these organizations.
Online critics characterized the Polymarket contract as degrading and questioned the association of celebrity ambassadors with the company. An online petition specifically named James, Manning, Daddario, and model Emily Ratajkowski, urging other famous endorsers to sever ties with Polymarket.
Prediction markets enable users to trade on the outcomes of future events, with sports often accounting for a significant portion of trading volume. This incident follows past controversies involving prediction markets, including a U.S. Army sergeant indicted for betting on the capture of Venezuelan President Nicolás Maduro on Polymarket's international platform. In April, The Associated Press reported concerns of insider trading after numerous new accounts on Polymarket's international platform placed substantial bets on a U.S.-Iran ceasefire shortly before President Donald Trump announced one.
Separately, Polymarket's international platform features an active market for betting on whether Cornell president Michael Kotlikoff will leave his position by October 31, which had accumulated over $10,700 in volume as of Tuesday.
The lawsuit at the center of the controversy was filed last month by a woman identified in court documents as Jane Doe. She alleges that seven fraternity members sexually assaulted or exploited her in October 2024 and that Cornell mishandled her complaints. The accused men have denied the allegations, asserting that their interactions were consensual or that they were not involved.