Sports Illustrated plans to enter predictions market
After failing in the online bookmaker market, US media brand Sports Illustrated (SI) has announced its entry into the predictions market. As part of an agreement with UK blockchain platform Galactic, the media outlet is launching SI Predict. This platform allows users to make contracts on sporting events. The project is awaiting regulatory approval, after which it will be available in relevant markets around the world.
According to an official statement from SI owner Authentic Brands Group, instead of standard win-or-lose markets, SI Predict will offer unique event contracts, including halftime performances. Commenting on the launch, Dan Dienst, executive vice chairman of Authentic Brands Group and chairman of SI’s board of directors, emphasised the sense of history:
‘We were keen to engage fans in the stories that are shaping the world of sport.’
Dienst explained that they chose Galactic to extend its platform to fans and sports enthusiasts. Generally, it allows them to express themselves beyond the sofa or neighbourhood pub and connect passionately with a more global audience through content related to their favourite sporting moments. This concept is outlined in the project’s promotional video (excerpt pictured).
Sports Illustrated in the online bookmakers market
The launch of SI Predict followed the closure of SI’s joint venture with 888 Holdings. On 6 March 2024, the UK betting company announced that it had terminated its deal with the leading US sports media outlet. Due to intense competition and low margins, 888 Holdings considered options to sell or exit its direct betting operations in the US.
Sports Illustrated, which has a large audience of sports fans, entered the online bookmaker market in an exclusive deal with 888 Holdings in 2021. Their joint venture, SI Sportsbook and Casino, was closed after Holdings decided to part ways with Authentic Brands Group. The total compensation for the cancellation of the contract will be $50 million.
Event contracts under close regulatory scrutiny
Before going to market, scheduled for the second quarter of 2025, Galactic and SI must ensure the platform meets standards set by the UK Financial Services Authority and the US Commodity Futures Trading Commission (CFTC). The latter is a federal regulator that checks the legality of specific markets, and the Kalshi prediction exchange is currently under the CFTC’s scrutiny.
As we wrote earlier, the CFTC is still investigating whether the company’s contracts fall into the category of ‘gambling’ as defined by the Commodity Exchange Act (CEA). If this is determined, the contracts will be subject to stricter regulation or face a potential ban. The CFTC is also conducting a review of similar contracts offered by Crypto.com. The outcome of this review could affect how the commission approaches Kalshi’s sports contracts.
In addition, in early March, the Nevada Gaming Control Board (NGCB) initiated proceedings requiring Kalshi to stop offering contracts for sporting events in the state. Shortly thereafter, the New Jersey Department of Gaming Regulation (DGE) issued a similar injunction to Kalshi and Robinhood on 27 March. While Robinhood agreed to the requirement, Kalshi decided to challenge the orders in court, arguing that the states were overstepping their authority.
This article was first published in Russian on 2 April 2025.
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