Kalshi Announces Sports Insurance Hedging Partnership
Kalshi’s new partnership with Game Point Capital, a large sports insurance broker, is part of its expansion of hedging options for sportsbooks.
Kalshi CEO Tarek Mansour announced the partnership on Thursday. He began by describing how Game Point can benefit from using Kalshi’s sports contracts:
“Game point capital [sic] issues hundreds of millions in sports insurance per year. Their most popular product is team and player performance bonus insurance: sports teams often structure large payouts to coaches and players that get triggered if they achieve certain milestones (winning championship, making the playoffs, scoring records, etc.). The bill is often large and teams smooth out their finances by hedging it.”
He then explained how exchanges can offer lower prices than over-the-counter agreements negotiated individually. Mansour ended by boasting the amount of money that could’ve been traded in a single Super Bowl trade without a large price movement:
“During the Super Bowl, Kalshi could have processed a $22 million trade without moving the price meaningfully. At this level of liquidity, Kalshi is now very attractive for Game Point and other similar companies: there’s more liquidity available, it’s cheaper, and the price is more transparent. We expect to process tens of millions in similar hedges from Game Point alone in the coming months.”
Sports insurers aren’t the only ones interested in Kalshi. One of the major leagues is considering a new partnership with Kalshi or Polymarket.
MLB prediction market partnership in talks
MLB Commissioner Rob Manfred is considering partnerships with Kalshi or Polymarket. Partnerships could give the MLB access to trading data that would allow illegal activity on those sites from players or MLB employees.
The NFL has refrained from partnering with prediction markets over game integrity concerns. Kalshi partnered with IC360 in March 2025 as it began releasing new sports contracts. The exchange also announced new responsible trading hub that month. While these features are not solely for attracting sports leagues, they are important for assuaging their most pressing concerns.
Meanwhile, the prediction market industry is preparing for formal rulemaking regarding some of its most popular contracts.
CFTC announces figures who will shape rulemaking approach
On Thursday, the CFTC released a list of members of the Innovation Advisory Committee (IAC). The list included professors, gaming CEOs, and prediction market industry and crypto leaders.
The IAC will inform how the CFTC approaches rulemaking regarding issues ike sports and election contracts. Members will also advise how the CFTC should make rules surrounding crypto once it becomes an official part of the agency’s remit.
Agency rulemaking could be subject to lawsuits under the Administrative Procedures Act (APA) from parties disgruntled with new rules. Rulemaking is an important step for granting the prediction market industry clarity.
But it will also open up a new legal battlefield for lawyers with APA practices.