The National Hockey League has become the first major US sports body to put its faith in prediction markets after reaching licensing agreements with Kalshi and Polymarket.
The NHL announced its landmark multiyear partnerships with Kalshi and Polymarket on Wednesday (October 22) along with a glowing endorsement from Keith Wachtel, President of NHL Business.
“As prediction markets continue to evolve at a rapid pace, partnering with the two market leaders, Kalshi and Polymarket, provides a tremendous opportunity for the broadest fan engagement during the NHL season,” he said.
“Polymarket and Kalshi are ideal partners as this category continues to grow and expand.”
What Is The Row Over Sports Prediction Markets?
The two leading platforms in the prediction market space have been greeted with increased opposition from the gambling industry since they began offering sports trades at the start of this year.
It has been a hotly debated topic with ongoing legal challenges, making it difficult to predict what will happens next in the increasingly popular but controversial trading space.
It has gained so much attention that even South Park took a swipe at the concept of prediction markets in a recent episode.
Kalshi in particular is facing multiple actions from state legislators who claim that sports trades are sports betting by another name and should be subject to the same rules, regulations and tax levies as sportsbook operators.
Trading as a financial exchange, Kalshi is presently operating under license to the Commodities Futures Trading Commission (CFTC), a federal legislative body.
Because it is federally licensed, Kalshi is able to offer sports events contracts in all 50 US states including those whose local governance does not allow regular sportsbooks to trade.
It has proved to be extremely popular with US users, with sports prediction markets exceeding $2 billion in trading volume at Kalshi in the first half of this year.
Polymarket has so far been operating offshore as a crypto-powered financial exchange but last month was given the green light to go live in the US after settling its differences with the CFTC.
Kalshi: An ‘Important Milestone’ For Prediction Markets
Under the terms of the partnership both Kalshi and Polymarket will be allowed to use NHL logos, marks and trademarked terms such as the Stanley Cup in their trades and promotions.
They will also receive prominent brand exposure via Digitally Enhanced Dashboards and blue line slot virtual signage during broadcasts of NHL games, through the regular season to Stanley Cup Playoffs, the NHL Winter Classic and the NHL Stadium Series.
Tarek Mansour, the CEO of Kalshi, heralded the landmark collaboration.
“Teaming up with the NHL is an important milestone for Kalshi and the industry at large,” he said.
“To have a league like the NHL embrace Kalshi is a testament to the integrity, safety, and trust with consumers that Kalshi has spent years building during our time pioneering this asset class.
“It should be clear now – prediction markets are here to stay.”
Shayne Coplan, founder and CEO of Polymarket, echoed those sentiments.
“The NHL has always been about giving fans an incredible experience,” he said.
“We’re excited to bring that energy to Polymarket, where fans can engage with the NHL and its teams in a new way.
“Together, we’re making the game more interactive and connected, and we appreciate the support of the NHL in recognizing the future of fan experiences benefits from engagement with prediction markets.”
How Will Sportsbooks React To The NHL Deal?
The big players in US sports betting industry have mainly adopted a wait and see policy when it comes to sports prediction markets, with some actually speaking out against the concept.
FanDuel have been an exception to the rule, allying with Chicago Mercantile Exchange in August to develop FanDuel Markets, though originally sports events were off the table.
At the start of this week, DraftKings acquired Railbird to advance its future growth in prediction markets.
Railbird Exchange is a federally licensed exchange through the CFTC and the alliance will lead to the launch of DraftKings Predictions, a mobile application that will allow customers to trade regulated event contracts on real-world outcomes across finance, culture, and entertainment.
Gaming operator Underdog recently teamed up with Crypto.Com Derivatives to offer sports prediction markets across all of North America’s top leagues.
Now that such a high-profile sporting body as the NHL has given its official approval to the concept of sports prediction markets, it could be a game changer in the minds of those sports betting giants who have so far resisted the pull to jump on board.
