NHL Inks Historic Deals With Kalshi, Polymarket to Embrace Prediction Markets: A New Era for Sports and Crypto
Introduction: A Watershed Moment for Sports and Prediction Markets
In a landmark move that signals a significant shift in the relationship between professional sports and financial technology, the National Hockey League (NHL) has signed multiyear licensing agreements with prediction market platforms Kalshi and Polymarket. Reported by the Wall Street Journal on October 22, 2025, these deals represent the first time a major U.S. professional sports league has permitted the use of its official trademarks by markets operating outside the traditional sportsbook industry. This strategic pivot opens a new frontier for event-based derivatives, pitting blockchain-powered and CFTC-regulated platforms against established giants like DraftKings and FanDuel. For the crypto and prediction market ecosystem, the NHL’s endorsement provides a level of institutional legitimacy previously unseen, potentially catalyzing a new wave of mainstream adoption and regulatory clarity.
Breaking New Ground: The Structure of the NHL Agreements
The core of these historic deals grants Kalshi and Polymarket the right to use official NHL branding. This includes team names, the league logo, and specific terms like “Stanley Cup” on their respective platforms where users trade on the outcomes of hockey games and related events. This is not the NHL’s first foray into brand licensing for gambling-adjacent activities; the league already maintains similar partnerships with traditional sportsbooks DraftKings, FanDuel, and BetMGM.
However, the critical distinction lies in the nature of the partners. By extending these rights to Kalshi and Polymarket, the NHL is explicitly embracing the prediction market model, which functions differently from a traditional sportsbook. Instead of placing a bet with a bookmaker, users on these platforms buy and sell shares in the outcome of an event, with the price fluctuating based on market sentiment. This move signals a calculated expansion of the league’s strategy to monetize its brand across the entire spectrum of event-based derivatives, acknowledging the growing consumer demand for this specific type of financial product.
Kalshi: The Regulated Gateway to 50-State Access
A key player in this new arrangement is Kalshi, a prediction market platform regulated by the U.S. Commodity Futures Trading Commission (CFTC). This regulatory status is a monumental differentiator. Because Kalshi is regulated as an exchange for event contracts by the CFTC, it has obtained legal clearance to offer its contracts in all 50 states. This includes states where online sports betting remains heavily restricted or outright illegal.
This gives Kalshi an immediate and significant competitive advantage in terms of market reach. While a resident of a state like Utah or Hawaii cannot legally use FanDuel or DraftKings to bet on sports, they can legally use Kalshi to trade on the outcome of an NHL game. For the NHL, this partnership is a strategic masterstroke, allowing it to engage fans and monetize its intellectual property in markets that were previously inaccessible through its sportsbook partners. Kalshi represents the bridge between traditional, regulated finance and the world of prediction markets, offering a compliant path to a national audience.
Polymarket: Blockchain's Comeback with Institutional Backing
On the other side of this dual deal is Polymarket, a well-known name in the crypto space that operates its prediction markets on the blockchain. Polymarket’s journey has been more turbulent from a regulatory standpoint; the company has faced challenges from U.S. regulators in the past. However, this NHL deal coincides with a period of significant transformation for the platform.
The company recently secured a substantial $2 billion investment from Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange. This injection of capital and, more importantly, institutional credibility, is likely providing Polymarket with the financial backing and regulatory leverage to prepare for a domestic relaunch. The NHL partnership must be viewed in this context: it is a powerful signal that Polymarket is building a sustainable, compliant operation with high-profile backing. For crypto natives, this deal validates the potential of blockchain-based prediction markets and demonstrates that major leagues are willing to partner with them when they have serious institutional support.
Divergent Paths: Comparing Kalshi and Polymarket's Market Roles
While both companies fall under the "prediction market" umbrella and now share an NHL partnership, their operational models and target market roles are distinct.
- Kalshi operates within the existing U.S. regulatory framework as a centralized, CFTC-regulated exchange. Its primary value proposition is legality and accessibility across the entire United States. It appeals to users seeking a familiar, regulated environment for trading event contracts, effectively functioning as a new type of financial exchange for sports outcomes.
- Polymarket leverages blockchain technology to create a decentralized, global market. Its appeal lies in its crypto-native infrastructure, permissionless access (where regulations allow), and integration with the broader decentralized finance (DeFi) ecosystem. Its recent $2 billion investment from ICE suggests an ambition to blend its crypto roots with traditional finance's scale and stability.
The NHL’s decision to partner with both indicates a strategy to cover all bases: reaching the broad U.S. market through Kalshi’s regulatory status while also tapping into the global, tech-savvy crypto audience through Polymarket’s blockchain platform.
Market Reaction: Early Signals from Traditional Sportsbooks
The financial markets have already begun pricing in the potential disruption represented by these deals. Following the announcement, shares of Flutter Entertainment—the parent company of FanDuel—fell sharply. DraftKings stock also experienced a dip.
This investor reaction reflects a tangible concern that regulated prediction markets could erode the market share of traditional sportsbooks. The primary threat is Kalshi’s 50-state access. If prediction markets offer a similar user experience and engagement for sports fans but are available to a population nearly twice the size of the legal sports betting market, it poses a direct competitive challenge. This is not merely theoretical; it is a fundamental shift in the landscape that equity investors are taking seriously.
Contextual Momentum: The Resurgence of Prediction Markets
The NHL’s timing is not accidental. Prediction markets have experienced a significant surge in popularity and mainstream attention in recent months. A major driver has been intense interest in political contracts leading up to the 2024 U.S. presidential election.
Platforms like Kalshi and Polymarket attracted hundreds of thousands of users who traded on outcomes related to debate performances, candidate withdrawals, and election results. This demonstrated the public's appetite for using financial instruments to speculate on real-world events far beyond sports. The NHL’s move can be seen as capitalizing on this renewed momentum, applying a proven model from the political arena back to its core business of sports entertainment. It indicates that leagues are now following the attention and liquidity that these new platforms have generated.
Strategic Conclusion: Legitimizing a New Asset Class
The NHL’s landmark deals with Kalshi and Polymarket are more than just new licensing agreements; they are a validation of prediction markets as a legitimate and scalable asset class. For the crypto industry, Polymarket’s inclusion is particularly significant, representing a high-water mark for blockchain-based applications in regulated mainstream entertainment.
The immediate impact is clear: prediction markets are now in direct competition with traditional sportsbooks, armed with unique advantages in regulatory reach and technological innovation. The broader market insight is that professional sports leagues are becoming increasingly sophisticated in their approach to monetizing fan engagement, viewing event derivatives as a complementary revenue stream rather than a niche corner of gambling.
What to Watch Next:
- Regulatory Domino Effect: Will other major leagues like the NFL, NBA, and MLB follow the NHL’s lead? Their actions will determine if this is an isolated experiment or an industry-wide trend.
- Polymarket's U.S. Relaunch: The specifics and scale of Polymarket's planned domestic return, backed by ICE's $2 billion, will be critical to watch. Its ability to operate compliantly will be its biggest test.
- User Adoption Metrics: Tracking user growth and trading volume for NHL-specific contracts on both platforms will provide the first real-world data on consumer demand for this new model.
- Competitive Responses: How will DraftKings and FanDuel respond? They may develop their own prediction market products, seek deeper exclusivity with other leagues, or intensify their lobbying efforts.
The puck has been dropped. The game between traditional sportsbooks and next-generation prediction markets has officially begun, and the entire world of sports finance is watching.
AI Disclaimer: This article was generated with the assistance of AI tools and reviewed by an editorial team to ensure accuracy and adherence to professional standards.