Sports Illustrated has secured a deal to enter the emerging prediction markets business.
According to a Bloomberg report, the storied sports media brand is partnering with British digital marketing company Galactic to enter the prediction market space allowing users to engage with sports event contracts. The new venture, SI Predict, will be available to users in eligible markets around the world in Q2 2025 pending regulatory approvals.
Sports Illustrated and Galactic are launching the new prediction markets venture “to foster conversation, debate and engagement, allowing users to showcase their expertise without the complexities of gambling,” according to a joint statement from the companies.
Galactic and Sports Illustrated will ensure the platform adheres to standards set by the UK’s Financial Conduct Authority and the U.S. Commodity Futures Trading Commission (CFTC), which plans to hold roundtable discussions about prediction markets.
SI Predict will offer unique event contracts, including halftime performances but will not offer standard win or lose markets.
The CFTC turned its attention to event contracts ahead of the 2024 US presidential election as prediction markets such as Kalshi provided consumers with access to a flurry of politically-focused markets. Since last year’s presidential election, companies including Robinhood and Crypto.com have explored offering sports event contracts to consumers.
The availability of sports event contracts has drawn the attention of the CFTC with the regulator previously asking Robinhood and Crypto.com to suspend its contracts amid a review. Robinhood has since partnered with Kalshi to offer event contracts in its app.
Sports Illustrated plans to launch its prediction markets platform as Acting CFTC Chair Caroline Pham hosts roundtables on the issue in the coming months. Pham and the CFTC will work with market experts, public interest groups and industry leaders to create a regulatory framework as major entities like MLB push for regulation of event contracts.
Earlier this month, MLB urged the CFTC to create an “integrity framework” around event contracts as the league is concerned about integrity and data threats as prediction markets aren’t required to track betting activity compared to licensed sportsbooks and casinos.
The Nevada Gaming Control Board (NGCB) has shared its stance on event contracts by ordering Kalshi to stop accepting business from residents and visitors in the state. The NGCB sent a cease and desist letter to Kalshi for violating state gaming laws. The regulator considers Kalshi’s event contracts unlawful “unless and until approved as licensed gaming.”
The brand is launching SI Predict after the closing of its joint venture with 888 Holdings.
The venture, SI Sportsbook and Casino, was shuttered after 888 agreed to part ways with Sports Illustrated owner Authentic Brands Group. As part of its agreement to exit the U.S. sports betting market, 888 paid a $25 million termination fee. 888, rebranded as Evoke plc, will make an additional payment of $25 million between 2027 and 2029.
888 cut ties with Authentic Brands following a strategic review of its U.S. B2C operations.
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