The piece examines how prediction markets built around sports are booming in the U.S. while leagues, regulators, and the traditional gambling industry remain conflicted about them. It focuses on platforms like Kalshi and Polymarket, their partnerships with leagues such as the NHL and MLS, and the regulatory debate over whether sports event contracts are innovative financial products or just another form of sports betting.
Key takeaways:
- Prediction markets like Kalshi and Polymarket have seen explosive growth in sports-related “event contracts,” sometimes handling more than $1 billion in trades around major events such as the Super Bowl.
- Major leagues are experimenting but cautious: the NHL and some teams have signed partnership deals that allow them to veto certain markets and impose integrity rules, while other leagues and the casino industry warn that these products may be gambling in disguise and could undermine state regulation.
- The legal status of sports event contracts remains unsettled, as platforms argue they are regulated financial instruments under federal commodities law while critics push for tighter oversight, leaving the future of sports prediction markets dependent on ongoing regulatory and political battles.
“You have found a partner on the other side that is willing to trade you that contract or that offer. They are a market maker,” says Bakowicz
Read the article.
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