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Introduction
The National Hockey League has signed groundbreaking multi-year licensing agreements with prediction market platforms Kalshi and Polymarket, marking the first time a major U.S. professional sports league has officially authorized prediction markets to use its trademarks. These historic partnerships arrive as weekly prediction market volume surpasses $2 billion for the first time, with sports betting driving $414.7 million in volume last week alone, signaling a major shift in how professional sports leagues engage with emerging betting technologies.
Key Points
- Polymarket recently reclaimed market leadership with $1 billion weekly volume versus Kalshi's $950 million after trailing for eight weeks
- Both platforms secured CFTC no-action letters this year, allowing operation without immediate federal enforcement risks
- Prediction markets are expanding beyond sports into real-world events like politics and macroeconomics, evolving into real-time sentiment tools
A Watershed Moment for Prediction Markets
The NHL’s endorsement represents a significant validation for prediction markets that have historically operated in regulatory gray areas. According to NHL Business President Keith Wachtel, the partnership with “the two market leaders, Kalshi and Polymarket, provides a tremendous opportunity for the broadest fan engagement during the NHL season.” This move comes as prediction platforms begin competing directly with established sportsbook giants like DraftKings and FanDuel in the lucrative sports betting market, which saw $414.7 million in weekly volume despite ongoing election-related activity in political markets.
The timing of these licensing agreements coincides with unprecedented growth in the prediction market sector. Weekly trading volume climbed past $2 billion for the first time, with Polymarket recently reclaiming market leadership from Kalshi after trailing for eight weeks. Polymarket posted $1 billion in weekly volume against Kalshi’s $950 million, demonstrating the fierce competition in this rapidly expanding space. Jamie Elkaleh, chief marketing officer at Bitget Wallet, told Decrypt that “the addition of licensed NHL markets could accelerate the platforms’ growth trajectory in Q4, as official league partnerships bring credibility and attract new users.”
Massive Funding and Regulatory Milestones
Both platforms have secured substantial financial backing that underscores investor confidence in the prediction market model. Earlier this month, Kalshi raised $300 million at a $5 billion valuation with backing from prominent venture firms Andreessen Horowitz, Sequoia, and Coinbase. Meanwhile, Polymarket secured a $2 billion investment from NYSE-owner ICE, pushing its valuation to an impressive $9 billion. These massive funding rounds have positioned both companies as well-capitalized competitors in the evolving sports betting landscape.
Critical to their operational stability, both Kalshi and Polymarket secured CFTC no-action letters this year, clearing them to operate without immediate federal enforcement risks. This regulatory clearance, combined with the NHL’s official endorsement, provides crucial legitimacy to platforms that have navigated uncertain regulatory waters. The combination of massive funding and regulatory approval creates a foundation for sustained growth and market expansion beyond their current boundaries.
Evolution Beyond Traditional Sports Betting
While the NHL partnership represents a significant sports betting opportunity, both platforms are expanding their scope well beyond athletic competitions. According to Elkaleh, both platforms are tapping into real-world events like politics and macroeconomics, evolving into “real-time sentiment tools” that capture market intelligence across diverse domains. This expansion reflects the broader utility of prediction markets as decentralized forecasting mechanisms where liquidity and information efficiency determine prices rather than traditional odds-setting models.
Ivan Muller, CMO at crypto-based gaming and sports betting platform Dexsport.io, emphasized the complementary nature of these emerging models. “In the long term, partnerships between licensed prediction platforms and established sportsbooks are more likely than head-to-head competition,” he told Decrypt. Muller explained that “traditional sportsbooks focus on entertainment-driven, event-specific wagering with defined odds and consumer protections; meanwhile, prediction markets operate as decentralized forecasting tools where liquidity and information efficiency determine prices. If effectively regulated, both models could ultimately complement each other.”
Looking ahead, speculation continues about Polymarket’s potential token launch, with users on Myriad giving the platform just an 18.3% chance of announcing its token this year. Decrypt has previously reported that Polymarket is planning to launch its own native crypto token—likely in 2026. As the prediction market sector continues its rapid evolution, the NHL’s pioneering partnership with Kalshi and Polymarket may well establish a template that other major sports leagues will follow, further blurring the lines between traditional sports betting and decentralized forecasting platforms.
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