Prediction market platform Kalshi is partnering with fantasy sports app Sleeper in a move that will give it access to 10 million more potential users.
Sleeper, which had previously attempted to sue the US derivatives regulator Commodity Futures Trading Commission (CFTC) before dropping its lawsuit last month, will now offer prediction markets to its broad user base.
Kalshi push to expand brokerage client list
For Kalshi, the deal to bring in Sleeper continues the business’ expansion strategy, which counts the likes of Robinhood, Coinbase, and fellow fantasy sports operator PrizePicks as companies it powers.
Chief of Staff at Kalshi, Alex Cuoci, said: ““Sleeper is a premier product with a highly engaged userbase. Continuing our brokerage expansion is a key part of Kalshi’s vision for the coming years, and we’re thrilled to have Sleeper join us in time for the Super Bowl.”
Eric Kim, Head of Operations at Sleeper, said: “This is an exciting next step for Sleeper, and a natural extension of our mission to build the most engaging experience for our users,
“Partnering with Kalshi gives us the opportunity to bring prediction markets directly into the place where millions of fans already come together around sports.”
Partnership brings to an end a months-long pursuit for Sleeper
Sleeper has been attempting to enter the prediction market space since the first half of last year and today’s announcement brings to an end what proved a convoluted and litigious pursuit.
The company had applied to become a Futures Commission Merchant (FCM) licence last summer, but their efforts were rebuffed by the CFTC, which led to the business attempting to sue the government regulator using the same lawyer used by Kalshi in Joshua Brooks Sterling.
However, the company was certified as an FCM by the CFTC in January last month, clearing the path forward for the partnership to be established.
Sleeper says it is now one of the world’s fastest-growing fantasy sports platforms by organic growth, posting some of the highest per-user engagement rates in the industry. With a user base topping eight figures, the platform connects sports fans through a mix of community features, content, and real-time data in a “single, social-first experience”.
Super Bowl to generate huge prediction market interest
Much of the industry is casting an eye to the betting data versus the prediction market numbers, with the Super Bowl clash between the Seattle Seahawks and New England Patriots, taking place on Sunday 8 February, deemed a test case of which sector is winning the battle.
Analysts expect record levels of activity across event-contract platforms, where traders can buy and sell positions tied to everything from the game winner to player performance and in-game outcomes.
Supporters of prediction markets argue the Super Bowl’s massive, time-bound audience makes it an ideal showcase for real-time price discovery and liquidity, while critics say the comparison with regulated sportsbooks will sharpen scrutiny around consumer protections and market integrity.
New York Attorney General Letitia James issued a warning ahead of the clash, saying: “Ahead of the Super Bowl, New Yorkers need to know the significant risks with unregulated prediction markets,
“It’s crystal clear: so-called prediction markets do not have the same consumer protections as regulated platforms. I urge all New Yorkers to be cautious of these platforms to protect their money.”
Either way, the numbers generated around the NFL’s showpiece are likely to be closely watched by regulators, operators, and investors alike.
Concerns continue around growing Kalshi monopoly
While it has been tying up partnerships with other prediction market platforms, Kalshi has also been securing deals with other established names, like media giant CNN.
The company has faced backlash from some of the country’s most high-profile lawmakers for its outreach policy, including Congressman Abe Hamadeh, who had written a letter to acting CFTC chair Caroline D. Pham outlining his concerns around the partnership between Kalshi and CNN.
He wrote: “CNN would be uniquely positioned to shape public perception and news cycles around the very events Kalshi lists as tradable markets,
“The situation is chilling, and I have questions. We need to know if the Commission is assessing this partnership to see if it is creating vulnerabilities for foreign or domestic actors to influence U.S politics, economics, or national security outcomes for financial profit.”
