The National Hockey League (NHL) made history as the first major US professional sports league to partner with prediction market platforms, signing multi-year agreements with both Kalshi and Polymarket.
However, the announcement has triggered criticism from gaming industry regulators and established sportsbook operators who argue these platforms operate outside legal sports betting frameworks.
The partnerships grant both companies access to official NHL data, logos and trademarks, along with advertising opportunities during game broadcasts.
Keith Wachtel, President of NHL Business, defended the deals as a natural evolution in fan engagement, stating that prediction markets represent a tremendous opportunity for broader interaction during the NHL season.
Wachtel stated: "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. Polymarket and Kalshi are ideal partners as this category continues to grow and expand."
The companies themselves have framed the agreement as validation of their legitimacy, with Kalshi CEO Tarek Mansour asserting that prediction markets are "here to stay."
Bill Miller, President and CEO of the American Gaming Association, issued a forceful rebuke of the arrangement, however. Miller characterized the partnership as "deeply troubling" and "dangerous," arguing that Kalshi and Polymarket operate entirely outside the regulatory framework established by states, Tribal governments and federal law.
Miller's primary concerns center on the absence of consumer protections that licensed sportsbooks must provide, including responsible gaming tools, anti-money laundering controls and age verification standards that match state requirements.
The legal landscape surrounding prediction markets remains contentious and unsettled. Multiple state regulatory bodies have deemed these platforms illegal, and attorney generals from 15 of the NHL's 19 US home markets have filed court briefs warning that eliminating state regulation of online sports betting poses serious risks to citizens.
The Commodity Futures Trading Commission, which regulates Kalshi, has yet to fully review sports contracts, and questions persist about whether they comply with longstanding prohibitions on gaming under the Commodity Exchange Act.
The controversy highlights a fundamental disagreement about how prediction markets should be classified. These platforms offer "event contracts" on sporting outcomes that function similarly to traditional sports bets but are marketed as financial instruments rather than gambling products.
Kalshi operates under CFTC regulation and offers its products in all 50 states, including those that restrict traditional sports betting. Polymarket, which was banned from serving Americans in a 2022 CFTC settlement, acquired a regulated exchange in July and plans to relaunch US operations.
Traditional sportsbook operators face mounting pressure from this emerging competition. Since late September, when Kalshi launched parlay-style products and announced a partnership with Robinhood Markets, shares of DraftKings have declined 27% whilst Flutter Entertainment, FanDuel's parent company, has dropped 14%. In response, established operators are adapting their strategies, with DraftKings acquiring a CFTC-licensed exchange and FanDuel partnering with CME Group to develop similar trading platforms.
The regulatory divide extends beyond business interests to fundamental questions about state sovereignty over gambling. Miller emphasized that the US has spent seven years building a robust legal sports betting market defined by transparency, responsibility and state and tribal regulation. He argued that prediction markets represent an attempt to circumvent these protections, allowing companies to unilaterally decide who can bet, where they can bet and how they can bet without community input.
The Trump administration's approach has complicated matters further. The Republican-led CFTC has taken limited action to prevent Kalshi from launching sports contracts, and Donald Trump Jr. serves as an adviser to both Kalshi and Polymarket. This political dimension adds another layer to an already complex regulatory situation that legal observers expect may ultimately reach the Supreme Court.
The NHL maintains existing partnerships with traditional sportsbooks including DraftKings, FanDuel and BetMGM, positioning the prediction market deals as complementary rather than exclusive arrangements.
Whether this precedent will influence other major leagues remains uncertain, but the controversy underscores broader tensions about innovation, regulation and consumer protection in the evolving landscape of sports wagering.
According to Miller, both Kalshi and Polymarket currently offer sports-based contracts "to consumers in all 50 states" without participating in the established legal and regulatory system
