NHL Signs Multiyear Licensing Deals With Kalshi, Polymarket: Report

• The NHL’s multiyear licensing deals with Kalshi and Polymarket are set to be announced on Wednesday, according to the Wall Street Journal.
• The report added that the NHL would become the first major U.S. professional sports league to permit prediction markets to use its trademarks.
• President of NHL Business, Keith Wachtel, said that partnering with Kalshi and Polymarket would boost the NHL’s fan base to the “tech-savvy” users of prediction markets.

The National Hockey League (NHL) has reportedly inked licensing deals with prediction-market platforms Kalshi and Polymarket as an attempt to boost the efforts of these companies to challenge established sportsbook giants like DraftKings (DKNG) and Flutter Entertainment’s (FLUT) FanDuel.

According to a Wall Street Journal report, the deal would be announced on Wednesday, and the NHL, by entering the multiyear deals, would become the first major U.S. professional sports league to permit prediction markets to use its trademarks.

Details On The Licensing Deals

The report noted that both Kalshi and its rival Polymarket will have NHL’s permission to use its logo, terms such as “NHL” and “Stanley Cup,” and names of individual teams. The NHL also maintains licensing partnerships with major sportsbook operators, including DraftKings, FanDuel, and BetMGM, the Wall Street Journal said.

“Prediction markets are here to stay,” said President of NHL Business Keith Wachtel, according to the Wall Street Journal. He added that partnering with Kalshi and Polymarket would boost the NHL’s fan base to the “tech-savvy” users of prediction markets.

Growth Of Prediction Markets

The NHL deal comes at a time of intensifying competition for traditional sportsbooks like DraftKings, FanDuel, and BetMGM, as exchanges regulated by the Commodity Futures Trading Commission are gaining more popularity. This has resulted in shares of these leading betting companies witnessing significant declines.

In September, Edwin Dorsey noted that the duopoly maintained by DraftKings and Flutter Entertainment is now being “disrupted by prediction markets like Kalshi, which often offer customers better odds with deeper order books.”

In early October, Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, said it would invest about $2 billion in crypto-based prediction market company Polymarket. According to a report by The Wall Street Journal, citing people familiar with the matter, this deal could value Polymarket at as much as $10 billion.

Kalshi also reportedly achieved a $5 billion valuation in its latest funding round in October. According to a Bloomberg News report, Kalshi has raised over $300 million in this new investment round with backing from Sequoia Capital and Andreessen Horowitz.

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Also See: DraftKings Stock Soars On Railbird Deal, Draws Investor Attention As Jefferies Cheers Prediction Market Push

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