NHL signs deal with sports prediction market platforms

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

The National Hockey League (NHL) has formalized multi-year agreements with prediction market companies Kalshi and Polymarket, marking a milestone in the growing influence of these markets in the field of sports betting. This agreement represents the first collaboration between prediction markets and a major professional sports league in the United States. Prediction markets like Kalshi and Polymarket allow users to trade on the outcome of events, including sports competitions. Unlike traditional bookmakers, these platforms operate in all 50 states, even in those where sports betting is illegal. The alliance will allow companies to use the league’s data, as well as its brands, logos, and official designations, in a manner similar to the league’s agreements with its official bookmakers. Following the announcement of the agreement, Kalshi offered contracts on the Stanley Cup champion. The NHL, which already has agreements with ten betting houses in the United States and Canada, believes that prediction markets have not harmed the betting houses, but on the contrary, are expanding the ecosystem.

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

Keith Wachtel, president of NHL business

Kalshi faces various lawsuits from state gambling regulators, who allege that the company violates state laws by offering event contracts 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. In letters to the CFTC earlier this year, the NBA, NFL, and MLB expressed their concern for the protection of sports integrity in this new market. Wachtel stated 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 to include in their efforts,” said Wachtel. “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 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. “It should be clear by now: prediction markets are here to stay,” said Tarek Mansour, CEO of Kalshi, in a press release.