NHL signs deal with prediction markets: A new era of betting?

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

The National Hockey League (NHL) has sealed multi-year agreements with prediction market companies Kalshi and Polymarket. This decision marks a significant milestone, evidencing the growing relevance of these markets in the sports betting landscape. This agreement represents the first collaboration of its kind 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. The licensing agreement will allow these companies to use the league’s data, as well as its brands, logos, and official designations, in a manner similar to existing agreements with the NHL’s official sports betting operators. Following the announcement of the agreement, Kalshi offered contracts on the Stanley Cup champion. The NHL already has partnerships with ten betting houses in the United States and Canada. The league believes that prediction markets have not negatively affected betting houses so far, but rather, are expanding the ecosystem.

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

Keith Wachtel, NHL Business President

Kalshi is facing several lawsuits from state gambling regulators, who allege that the company violates state laws by offering event contracts that mimic sports betting. Kalshi argues that it is not subject to state jurisdiction and is regulated by the Commodity Futures Trading Commission, a federal agency. In letters sent 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 leagues safeguard the integrity of games.

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

Keith Wachtel, NHL Business President

The American Gaming Association, the casino trade group, called the NHL’s actions “deeply concerning” and described Kalshi and Polymarket as “undercover betting schemes disguised as ‘financial products'”.

“This measure sends a worrying message: that integrity, responsibility, and clear legality are optional in sports games. No professional league should lend its brand to companies that operate defying state law and consumer protection standards.”

Bill Miller, president and CEO of the AGA

In recent months, FanDuel and DraftKings have positioned themselves to enter the prediction market space.

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

Tarek Mansour, CEO of Kalshi