The National Hockey League (NHL) has entered into licensing agreements with prediction market platforms Kalshi and Polymarket, making it the first major U.S. professional sports league to allow the use of its trademarks by prediction markets or “licensed betting markets.”
As The Wall Street Journal reported on October 22, the multi-year deals grant both platforms the right to use the NHL logo, terms such as “NHL” and “Stanley Cup” and individual team names.
The intellectual property package is the same as the league extends to sportsbook operators such as DraftKings, FanDuel and BetMGM.
The agreements formalize prediction markets’ push into sports betting, a foray that has drawn legal challenges from state regulators and outrage from gambling industry groups.
Kalshi and Polymarket offer event contracts for games that function similarly to traditional sports betting, but operate under the supervision of the Commodity Futures Trading Commission (CFTC) instead of state gaming commissions.
As a federally recognized exchange, Kalshi offers contracts for sporting events in all 50 states, including jurisdictions that restrict betting on standard sportsbooks. Meanwhile, Polymarket is in the late stages of an American comeback.
Keith Wachtel, president of NHL Business, stated:
“Prediction markets are here to stay. Partnering with Kalshi and Polymarket could expand the league’s fan base to the tech-savvy users of prediction markets, Wachtel added, noting that sportsbooks remain “important partners” of the NHL.”
Volume increase and market share
The partnership comes as prediction markets record quarterly volumes in the billions of dollars. Kalshi and Polymarket are the largest platforms, with 46.6% and 52.1% of the market last week, respectively.
According to a Dune dashboard according to user dunedata, Kalshi’s volume rose from $1.9 billion in the second quarter to $4.5 billion in the third quarter. By comparison, Polymarket’s volume rose from $3.2 billion to $3.7 billion over the same period.
Combined volumes for the previous quarter amount to $8.2 billion, representing a 61% increase over Q2 results.
Kalshi has seen record volumes since September 29, when it launched a product similar to same-game parlays, and broker Robinhood Markets announced rising volumes in sports contracts.
Since that date, shares of DraftKings are down 27%, while shares of FanDuel parent company Flutter Entertainment are down 14%.
A parlay combines two or more bets, such as bets on the outcomes of individual games, into a single bet.
Before the NHL deal, Kalshi avoided using trademarked terms such as “NFL” or “Super Bowl” on his platform, instead referring to “Pro Football Champion” and identifying teams by their city.
The NHL and other leagues have historically protected their intellectual property from unauthorized use.
The licensing agreements remove that restriction, allowing Kalshi and Polymarket to market sports contracts using official league branding.
Meanwhile, established sportsbooks have adapted accordingly. DraftKings has acquired Railbird Technologies, which owns a CFTC-licensed exchange, as part of a strategy to enter prediction markets.
In August, FanDuel partnered with the CME Group, an exchange operator, to develop a trading platform similar to Kalshi’s.
Polymarket received a $2 billion investment commitment from the parent company of the New York Stock Exchange earlier this month, supporting the startup’s plans to relaunch in the US in the coming months.
Polymarket stopped serving Americans in a 2022 settlement with the CFTC, but acquired a small CFTC-regulated exchange in July.
The exchange, now known as Polymarket US, plans to market sports and election contracts, according to regulatory filings.
The previous quarter’s growth and recent partnership show that prediction rails have captured significant market share from traditional operators, with sports IP accelerating adoption among retail users who previously could only access betting through more established names.
