The sports betting industry in the US continues to snarl and snap at prediction markets, accusing the likes of Kalshi and Polymarket of competing in the gambling arena without playing by the rules.
Arguments over regulatory boundaries and the validity of cease-and-desist orders have been dragging through the courts for months.
In the meantime, prediction markets continue to flourish and have strengthened their positions in the world of sport.
Portfolio Of Sports Partnerships
Both Kalshi and Polymarket signed multi-year deals with the National Hockey League (NHL) last October to become joint official prediction market partners.
Polymarket was named the official and exclusive prediction market partner of UFC and Zuffa Boxing in a deal signed with owners TKO Group Holdings in November.
There have been two more significant collaborations confirmed over the past 10 days.
Streaming service DAZN announced a partnership that will see live Polymarket data enhance its sports broadcasts.
A big move this week saw Major League Soccer (MLS) announce it had entered a multi-year partnership with Polymarket.
Shayne Coplan is the founder, CEO and driving force behind the trading platform.
He is no doubt that Polymarket can enhance fan enjoyment and engagement with live sport.
“As soccer’s audience continues to grow and evolve in the US, fans are looking for new ways to engage more deeply with the game.
“Through our partnership with MLS and Leagues Cup, we can surface real-time collective sentiment around key moments, matches, and season-long storylines, giving fans a more interactive, data-driven way to experience the game and engage with the world’s most popular sport.”
Polymarket’s Return To The US
Polymarket was operating in regulatory exile until late last year when it secured federal approval to return to the US.
Led by Coplan the trading platform moved swiftly, securing billions of dollars in funding and establishing strong sporting connections for its future.
The sports industry sat up and took notice when the company gained $2 billion backing from the operator of the New York Stock Exchange.
Some of the optics have been impressive too.
British heavyweight boxer Anthony Joshua and UFC star Paddy Pimblett have both fought in the US recently.
The pair have featured on social media receiving $500k branded neck chains from Polymarket.
For the investment of a few hundred thousand dollars, Polymarket has hit global sports audiences who have watched both fighters parading the company logo around their necks.
The Battle With The Sports Betting Industry
Sportsbooks in the US have to seek operating licences from individual US states to set up shop.
That applies to both retail outlets and for offering digital services online.
Prediction markets fall under the independent federal umbrella of the Commodity Futures Trading Commission, which oversees practices related to the sale of commodities and financial futures.
Prediction markets are deemed to be financial futures and not betting.
Once they have received CFTC approval, platforms can offer prediction markets across the country, regardless of whether individual state gambling laws allow sports betting.
The betting industry had kept a watchful eye on prediction markets after Kalshi’s success during the 2024 US presidential election.
The two were happy co-existing until prediction markets began offering event contracts on sporting outcomes last year.
Kalshi In The Courts
Kalshi offered yes or no trades on the outcome of February’s Super Bowl LIX.
That sparked a backlash from state governors and the sports gambling industry.
Through 2025 Kalshi was hit with cease-and-desist orders from 10 separate state regulators.
Court actions followed and many remain unresolved while Kalshi has continued to expand.
DraftKings And FanDuel Launch Prediction Markets
The sports betting industry had united in its opposition to prediction markets.
Their gripe was that operating without the same financial and legislative restrictions and state tax obligations was unfair.
Those sands have now shifted as companies have witnessed the growing financial clout and popularity of trading events.
US sports betting behemoths FanDuel and DraftKings have now lunched their own prediction market offerings.
DraftKings Predictions was rolled out to 38 US states in December and is expected to extend its reach soon.
FanDuel Predicts went live in all 50 US states earlier this month.
