Kalshi Secures US Open Exclusivity Amid Prediction Market Race
The partnership went into effect immediately following the conclusion of tournament qualifiers, according to sources. Financial terms of the agreement were not disclosed. The quick finalization follows the July 20 appointment of USTA CEO Craig Tiley, who accelerated discussions that were originally slated for the 2027 tournament cycle. Kalshi’s move mirrors broader pushes into professional sports by prediction markets, which are racing to capture users familiar with traditional sportsbooks and fantasy sports products.
Competitors have pursued similar athletic partnerships. Polymarket has established agreements with Major League Baseball and the New York Yankees, while both Kalshi and Polymarket maintain official partnerships with the National Hockey League. Individual MLB franchises, including the Atlanta Braves, Boston Red Sox, Los Angeles Dodgers, San Diego Padres, and San Francisco Giants, have also announced collaborations with Kalshi. Meanwhile, prediction market platform Novig entered the team partnership space through a deal with the New York Mets.
Regulatory Battles Complicate Federal Status
The US Open partnership unfolds against a backdrop of conflicting federal and state legal challenges regarding sports-event contracts. Kalshi operates as a designated contract market under the supervision of the Commodity Futures Trading Commission. The company contends that federal oversight of commodity contracts preempts state-level gambling regulations.
That legal argument suffered a setback when the U.S. Court of Appeals for the Ninth Circuit ruled against Kalshi in its dispute with Nevada state regulators. The Ninth Circuit panel found that the company failed to demonstrate that federal commodities law supersedes Nevada sports gambling rules for event contracts. This decision contrasts directly with a prior ruling from the Third Circuit, which blocked New Jersey from regulating Kalshi’s sports contracts. These split rulings leave the platform facing a patchwork of state-by-state operating conditions while it attempts to scale its mainstream sports visibility.
FAQ
- What does Kalshi’s US Open agreement involve? The deal makes Kalshi the exclusive prediction market partner of the US Open, blocking rival platforms from advertising at the venue and during ESPN’s television coverage.
- How is Kalshi regulated? Kalshi operates as a federally regulated designated contract market supervised by the Commodity Futures Trading Commission, though it faces ongoing litigation from state gaming regulators.
- What did the Ninth Circuit rule regarding Kalshi? The Ninth Circuit Court of Appeals ruled that federal commodities law does not automatically preempt Nevada state gambling regulations concerning Kalshi’s sports event contracts.
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