NHL Partners with Kalshi, Polymarket in Sports Betting First

The NHL’s multiyear licensing agreements with Kalshi and Polymarket represent a seismic shift in professional sports’ relationship with emerging betting technologies. As reported by The Wall Street Journal, the deals grant both platforms the same intellectual property rights that the league extends to traditional sportsbook operators like DraftKings, FanDuel, and BetMGM. This includes rights to use the NHL logo, terms such as ‘NHL’ and ‘Stanley Cup,’ and individual team names, effectively placing prediction markets on equal branding footing with established gambling industry giants.

Keith Wachtel, president of NHL business, explicitly acknowledged the permanence of prediction markets, stating ‘Prediction markets are here to stay.’ Wachtel emphasized that partnering with Kalshi and Polymarket could expand the league’s fan base to the tech-savvy users of prediction markets, while carefully noting that traditional sportsbooks remain ‘important partners’ of the NHL. This balanced approach reflects the league’s strategy to capitalize on new revenue streams without alienating existing betting partners.

The agreements formalize prediction markets’ push into sports betting territory, an incursion that has previously drawn legal challenges from state regulators and outcry from gambling-industry groups. Unlike traditional sportsbooks operating under state gaming commissions, Kalshi and Polymarket offer event contracts on games that function similarly to traditional sports bets but operate under the oversight of the Commodity Futures Trading Commission. This federal regulatory framework allows Kalshi to offer sports event contracts in all 50 states, including jurisdictions that restrict betting on standard sportsbooks.

The NHL partnership arrives as prediction markets record multibillion-dollar quarterly volumes that demonstrate their rapid ascent in the betting landscape. According to data from user dunedata’s Dune dashboard, Kalshi and Polymarket collectively dominate the prediction market space, accounting for 46.6% and 52.1% of the market respectively as of last week. Their combined volumes for the previous quarter reached $8.2 billion, representing a staggering 61% increase over the second quarter’s results.

Kalshi’s volume surged from $1.9 billion in the second quarter to $4.5 billion in the third quarter, while Polymarket’s volume increased from $3.2 billion to $3.7 billion during the same period. Kalshi has enjoyed record volumes since September 29, when it launched a product similar to same-game parlays—a betting format that combines two or more wagers into a single bet. This product innovation coincided with brokerage Robinhood Markets announcing surging volumes in sports contracts, indicating broader market momentum behind prediction market products.

The growth of prediction markets has corresponded with significant pressure on traditional sportsbook stocks. Since Kalshi’s same-game parlay product launch on September 29, DraftKings shares have dropped 27%, while shares of FanDuel parent Flutter Entertainment have fallen 14%. This inverse relationship suggests that prediction markets are capturing material market share from traditional operators, with sports intellectual property accelerating adoption among retail users who previously accessed betting exclusively through more established names.

Established sportsbooks have responded to the prediction market threat with strategic acquisitions and partnerships. DraftKings acquired Railbird Technologies, which owns a CFTC-licensed exchange, as part of a strategy to enter prediction markets. Similarly, in August, FanDuel partnered with the CME Group, an exchange operator, to develop a trading platform similar to Kalshi’s. These moves indicate that traditional betting operators recognize the competitive threat posed by prediction markets and are adapting their business models accordingly.

Polymarket’s trajectory illustrates the complex regulatory landscape facing prediction markets. The platform stopped serving Americans in a 2022 settlement with the CFTC but acquired a small CFTC-regulated exchange in July. Now known as Polymarket US, the exchange plans to list contracts on sports and elections according to regulatory filings. The platform received a significant vote of confidence earlier this month with a $2 billion investment commitment from the parent company of the New York Stock Exchange, supporting its planned US relaunch in the coming months.

The NHL licensing agreements remove previous constraints that forced prediction markets to avoid using trademarked terms. Before the deal, Kalshi avoided using terms like ‘NFL’ or ‘Super Bowl’ on its platform, instead referring to ‘Pro football champion’ and identifying teams by their cities. The formal licensing now allows Kalshi and Polymarket to market sports contracts using official league branding, potentially accelerating user adoption and legitimizing prediction markets in the eyes of mainstream sports fans.