NHL signs deal with prediction markets: Revolution in sports betting?

NHL Partners with Prediction Markets: A New Era in Sports Betting

The National Hockey League (NHL) has announced multi-year agreements with prediction market companies Kalshi and Polymarket. This decision marks a significant milestone, highlighting the growing relevance of these markets in the sports betting landscape. This agreement represents the first collaboration between prediction markets and a major professional sports league in the United States. Prediction markets, such as Kalshi and Polymarket, allow users to trade on the outcome of events, including sports competitions. Unlike traditional bookmakers, such as FanDuel and DraftKings, Kalshi and Polymarket operate in all 50 states, including California and Texas, where sports betting is not legal. This licensing agreement will allow companies to use the league’s data, as well as its trademarks, logos, and official designations, in a manner similar to the league’s agreements with its official betting partners. Following the announcement of the agreement, Kalshi offered contracts on the Stanley Cup champion, along with the “Professional Football Champion” and the “Professional Basketball Champion”. The NHL has partnerships with ten sportsbooks in the United States and Canada and believes that prediction markets have not been detrimental to sportsbooks so far, but are expanding the ecosystem.

“We believe that the rising tide is lifting all boats here”.

Keith Wachtel, NHL business president

Kalshi is facing multiple lawsuits from state gambling regulators, who allege that the company is violating state laws by offering event contracts that mimic sports betting. Kalshi argues that it is not subject to state jurisdiction and is instead regulated by the Commodity Futures Trading Commission, a federal agency. In letters to the CFTC earlier this year, the NBA, NFL, and MLB, which have official partnerships with betting houses, expressed their concern for the protection of sports integrity in this new market. Wachtel explained that the NHL believes that partnering with Kalshi and Polymarket helps the leagues safeguard the integrity of the games.

“As a league, we will be able to work with them on which markets they include in their efforts. That’s much better for all of us, not just for the NHL, but for all sports properties.”

Keith Wachtel, NHL Chief Business Officer

The American Gaming Association, the casino industry’s trade group, called the NHL’s actions “deeply concerning” and described Kalshi and Polymarket as “undercover betting schemes disguised as ‘financial products'”. In recent months, FanDuel and DraftKings have positioned themselves to enter the prediction market space. Tarek Mansour, CEO of Kalshi, stated in a press release:

“It should be clear now: prediction markets are here to stay.”

Tarek Mansour, CEO of Kalshi