NHL signs deal with prediction markets: Impact on 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 as these markets gain prominence and begin to transform the sports betting landscape. This agreement represents the first collaboration of this type 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, using “yes/no” contracts. Unlike traditional sportsbooks like 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 the agreements that the NHL has with its official betting partners. Following the announcement, Kalshi offered contracts on the Stanley Cup champion, along with the professional American football and basketball champions. The NHL already has partnerships with ten betting houses in the United States and Canada. The league believes that prediction markets have not harmed the betting houses so far, but on the contrary, are expanding the ecosystem.

“We believe the rising tide is lifting all boats here,” said Keith Wachtel, NHL chief business officer.

Keith Wachtel, NHL chief business officer

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 the leagues safeguard the integrity of the games.

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

Keith Wachtel, NHL chief business officer

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,” said Bill Miller, president and CEO of the AGA, in a statement. 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,” stated Tarek Mansour, CEO of Kalshi, in a press release.

Tarek Mansour, CEO of Kalshi