NHL Opens Door to Prediction Markets in Landmark Deals With Kalshi, Polymarket: WSJ

Core Insights - The NHL has signed multiyear licensing deals with Kalshi and Polymarket, marking the first time a major U.S. professional sports league has allowed its trademarks to be used by prediction market platforms [1][4] - This move positions Kalshi and Polymarket in competition with traditional sportsbooks like DraftKings and FanDuel, with each company taking a different regulatory approach [2] - Kalshi is regulated by the Commodity Futures Trading Commission, allowing it to operate in all 50 states, while Polymarket is preparing to relaunch domestically after facing regulatory challenges [3] Industry Impact - The NHL's licensing agreements indicate a shift in how professional sports leagues perceive the event derivatives market, expanding beyond traditional sportsbooks [4] - Following the announcement, shares of Flutter Entertainment and DraftKings have declined, reflecting investor concerns about potential market share loss to prediction markets [5] - Prediction markets have gained traction recently, particularly with interest in political contracts ahead of the 2024 U.S. presidential election, attracting thousands of users [6]