AUSTIN, Texas — Prediction markets are allowing users to purchase futures contracts on the Super Bowl, even in states like Texas, where sports betting is not legal.
According to a report from Axios, prediction market Kalshi opened up sports event trading contracts in all 50 states. Texas-based users are about to buy and trade contracts on the outcomes of various events, including the upcoming Super Bowl.
That’s because Kalshi operates as an intermediary, allowing users to buy or sell contracts against each other. Unlike true sports betting books like Draft Kings and Fan Duel, you are not betting against the house.
“Kalshi is the first CFTC regulated exchange dedicated to trading on the outcome of future events,” the company says on its website. “From inflation, to fed rates, to unemployment, to will the government shut down, Kalshi allows people to trade on a broad range of topics. We’ve developed a new asset class, event contracts, where you can buy Yes or No positions with respect to whether an event will happen or not.”
Use of prediction markets for sporting events could draw the attention of regulators. Last month, Kalshi and the Commodity Futures Trading Commission (CFTC) made their case at a federal appeals court over allowing contracts on elections and sports. New CFTC acting Chairman Caroline Pham could drop the agency’s case against the app and allow regulated event contracts.
Gov. Greg Abbott has signaled his support for legalizing online sports gambling in Texas.
His comments come after a University of Houston poll showed a majority of Texans in support of legalizing online and in-person sports betting.