The National Hockey League announced Wednesday that it has entered into a multi-year licensing agreement with prediction markets Kalshi and Polymarket. Other sports leagues could soon see the light of day.
Tarek Mansour, co-founder and CEO of Kalsh, told CNBC’s “Squawk Box” that the deal marked a “seminal moment” for Prediction Markets and the company.
“A league like the NHL partnering with us is a strong sign that prediction markets are here to stay,” Mansour said.
As part of the agreement with the NHL, Kalshi and Polymarket will have access to the league’s proprietary data and rights to use the NHL’s trademarks and logos. In return, Mansour said, the hockey league will benefit from a series of protections for its customers. The NHL said both companies would benefit from brand exposure during broadcasts.
Mansour said the NHL deal could be replicated in other leagues: “Be on the lookout for more announcements soon,” he told CNBC.
Representatives for the NBA and NFL did not immediately respond to requests for comment. MLB declined to comment.
In August, the NFL expressed concerns about prediction markets, which allow customers to trade on the outcomes of entertainment and cultural events, such as election results or the duration of the current government shutdown.
Kalshi and other event trading platforms are regulated by the Commodity Futures Trading Commission. Yet many states, regulators and tribes oppose prediction markets, arguing that they constitute unregulated gambling. Several state and federal lawsuits are pending regarding the alleged risks.
The American Gaming Association said in a statement Wednesday that the NHL deal “sends a troubling message.”
“The platforms in question do not comply with essential standards,” the AGA said. “Even worse, they currently offer sports betting in all 50 states to anyone over the age of 18 – some of which have not permitted any form of legal sports betting and those that have largely defined 21 as the current legal age for betting.”
Keith Wachtel, president of NHL Business, told CNBC he feels comfortable with Kalshi and Polymarket from a regulatory and integrity standpoint, noting that sportsbooks like FanDuel and DraftKings also have partnerships with prediction platforms.
He said the league’s interest in prediction markets lies in the ability to reach new fans.
“The great thing about prediction markets is that they go beyond sports,” he said. “It provides the opportunity to see a different audience grow significantly.”
Mansour said market criticism was normal for a disruptor and that he had confidence in Kalshi’s regulatory framework. He said Kalshi spent years working with the federal government to create regulated prediction markets.
“When we think about today’s announcement, the agreement with the NHL is really about that. It’s essentially a validation that we have established the right set of customer protections and the right set of market integrity measures to protect our markets, but also the game,” he said.