It happened faster than even expected. The NBA has announced its business alliance with Kalshi and Polymarket, the two leading platforms of the so-called ‘prediction markets’ in the United States. Without knowing the financial figures, this deal basically allows both companies to use official league data, as well as its intellectual property.
As he has done since extending a hand to the betting houses as well, Adam Silver argues that building bridges with these companies helps make their business relationships more transparent and, in doing so, to be able to set up safeguards from within, as they have relatively recently done with traditional wagering.
Prediction markets are not traditional betting markets. Although they are mainly regulatory gymnastics. In Kalshi or Polymarket you do not bet; you buy shares of an event, with each share priced by the free market at a value between 0 and 0.99 dollars. If the event for which you have “bet” occurs, each share purchased is paid out at 1$.
In the interest of this new partnership, the NBA has also reached an agreement with the Commodity Futures Trading Commission, the federal institution that regulates the budding industry of prediction markets.
Beyond this and according to The Athletic, the NBA’s plan is to expand its ties with DraftKings or FanDuel to bring prediction markets into its already lucrative relationship.
