Polymarket is recruiting an in-house team that may be involved in transactions with clients.

Odaily reports that Polymarket is recruiting new members for its internal market-making team, which may trade against clients within its exchange. This comes after its main competitor, Kalshi, faced criticism for a similar feature.

Sources revealed that the New York-based prediction market startup has recently spoken with several traders, including sports betting traders, to invite them to join the new division. Polymarket declined to comment.

Polymarket and its main competitor, Kalshi, have grown rapidly in recent months, both offering exchanges that allow betting on the outcomes of sports games, elections, and other events, and both receiving approval from U.S. federal regulators. Both companies position themselves as neutral platforms, contrasting with traditional sports betting companies that set odds and profit from customer losses.

However, Kalshi already operates a division called Kalshi Trading, which quotes prices on exchanges, effectively acting as the counterparty to some of its clients' trading. While Kalshi executives claim the division is there to increase liquidity and improve the client experience, critics argue that its market-making efforts create a conflict of interest with clients, making it resemble a traditional sports betting company. A proposed class-action lawsuit filed last month alleges that Kalshi Trading sets odds that are unfavorable to clients.

Polymarket's formation of its internal market-making team comes as it re-enters the U.S. market years after paying a $1.4 million fine to settle allegations of wrongdoing and being barred from the market. Prediction markets operate by matching buyers and sellers of "yes" or "no" contracts, thus relying on market makers willing to take on unpopular trades.