Kalshi inks sports hedging deal with Game Point on the heels of over $1 billion in Super Bowl trading

Prediction marketplace Kalshi has partnered with broker Game Point Capital to enter the institutional sports risk hedging market, allowing teams to hedge performance bonus payouts as an alternative to the restrictive over-the-counter reinsurance market. Game Point CEO Tarek Mansour noted that the sports insurance and reinsurance market is worth about $9 billion annually and is projected to double by 2030. Game Point has already executed hedges for two NBA teams on Kalshi, achieving significantly better pricing than traditional OTC quotes.

This institutional move comes as sports-related contracts dominate Kalshi's activity, which saw over $1 billion traded on Super Bowl Sunday alone. The platform's overall volume has surged, mirroring broader trends in U.S. sports betting, with platforms like DraftKings also expanding prediction offerings. Despite this growth, prediction markets like Kalshi and Polymarket are facing increasing regulatory friction at the state level, leading to ongoing legal challenges regarding licensing and jurisdiction.

(Source：The Block)