Polymarket, the online betting exchange where users wager on real-world outcomes, has weighed a deal that would value the company at $9 billion, according to The Information.

The number marks a sharp climb from its $1 billion valuation just three months ago, when it raised funds in a round led by Peter Thiel’s Founders Fund.

The rise comes as regulators loosen restrictions. In 2021, the Commodity Futures Trading Commission barred Polymarket from offering prediction contracts in the U.S. But earlier this year the agency gave the platform the green light to operate domestically, opening the door for new growth.

Polymarket allows users to place bets on political elections, court rulings and geopolitical events. During the last U.S. election cycle alone, the site processed more than $8 billion in wagers. That puts it ahead of sports betting giants FanDuel, DraftKings and Betfair in terms of online traffic.

Competitor Kalshi has also seen its valuation rise. The company, which offers similar real-money event contracts, is now valued at $5 billion, up from $2 billion earlier this year, according to the same report. The jump suggests investors are betting that regulated prediction markets could become mainstream.

Polymarket has also attracted politically connected backers. Donald Trump Jr.’s venture capital firm, 1789 Capital, invested in the company in a deal worth tens of millions of dollars, with Trump Jr. joining as an advisor.

Prediction markets like Polymarket remain controversial in Washington, where critics argue they risk fueling misinformation. Supporters, however, say they provide a transparent gauge of public expectations on political and global events.