UFC and Polymarket: A New Era in Sports Prediction
The UFC’s parent company announced a multi-year partnership with Polymarket, marking a milestone in the expansion of prediction markets in the American sports arena. This strategic alliance sets the stage for Polymarket’s official launch in the United States. Prediction markets, such as Polymarket and Kalshi, offer users the ability to bet on the outcome of events, including sports competitions. Unlike traditional bookmakers like FanDuel and DraftKings, Polymarket has the ability to operate in all 50 states, even in those where sports betting is not yet legal, such as California and Texas. Polymarket, currently available globally, plans its official launch in the United States in the coming months. UFC will integrate Polymarket’s prediction market odds into its live broadcasts, displaying market activity during fights via a “fan prediction scoreboard”.Shayne Coplan, founder and CEO of Polymarket, highlighted that this alliance will allow fans to buy and sell, as if they were stocks, throughout the fight. This, according to Coplan, will drive new user behavior and open an innovative form of participation, where it will be possible to buy and sell as the combat progresses. The announcement of this collaboration comes shortly after the NHL became the first American professional league to announce an agreement with prediction markets. The regulation of prediction markets is a legally controversial issue. Several state gaming regulators have sued Kalshi, a competitor of Polymarket, alleging that the company violates state laws by offering contracts on events that simulate sports betting. Kalshi argues that it is not subject to state jurisdiction, but is regulated by the Commodity Futures Trading Commission, a federal agency. After observing the growth of prediction markets, FanDuel and DraftKings announced that they will launch prediction markets, including contracts on sporting events, in the coming months. The UFC’s association with Polymarket comes a week after betting suspicions triggered accusations of match-fixing in a featherweight bout between Isaac Dulgarian and Yadier del Valle on November 1. The UFC terminated Dulgarian’s contract and is collaborating with the FBI in an investigation into the unusual betting activity.By partnering with Shayne and his team at Polymarket, we are opening a new dimension of engagement for fans.
Ari Emanuel, CEO of TKO, parent company of UFC
