US Open Partners with Kalshi for Last-Minute Deal, Officially Introducing Prediction Market

The United States Tennis Association (USTA) has entered into an exclusive partnership agreement with the prediction market platform Kalshi just before the US Open.

Scoop: The US Open has signed a contract with Kalshi as this year's exclusive prediction market partner at the last minute. Initially, USTA had no plans to establish a prediction market partner this year, but sources indicate that the decision changed recently. More details will be available on FOS.

Although they were initially exploring implementation after 2027, the new CEO Craig Tiley's proactive leadership, who took office in July, led to a surprising agreement just before the main event of the US Open at the end of August.

The key point of this contract is its strong "exclusivity." According to reports, competitors other than Kalshi are completely prohibited from advertising exposure at the US Open venues and during broadcasts on ESPN, a sports cable TV channel. Such exclusive restrictions extending to broadcast slots are very rare in sports sponsorships.

Due to the sudden decision, the company's name was not yet reflected in the official sponsor list on the opening day, indicating that the on-site response was struggling to keep up. However, the market is already bustling, with approximately $1.6 million (about 255 million yen) in transactions occurring in the women's singles championship prediction market on the platform.

The Wave of Prediction Markets Expanding into Mainstream Sports

The speed at which prediction markets are entering sports content is accelerating.

Kalshi has partnered with five MLB teams. Kalshi has become the prediction market partner for the Dodgers, Red Sox, Braves, Giants, and Padres. This means that about 25% of MLB teams have formed prediction market partnerships.

Recently, Kalshi has partnered with five major MLB teams (including the Dodgers and Red Sox), and the trading volume related to baseball at the company has surged to 36 times year-on-year. The cumulative trading volume of major platforms in the industry has also surpassed $40 billion (about 6.4 trillion yen), creating significant excitement.

The Challenge of Regulatory Twists

While rapidly expanding, uncertainty lingers in terms of regulations. In the U.S. federal appeals court, contradictory rulings have emerged regarding the application of state gambling regulations to sports prediction markets, depending on the jurisdiction.

Despite concerns about the integrity of competitions and leaving legal gray areas, the decision by the pinnacle of tennis tournaments to enter the market has ushered in a new phase in the power struggle surrounding prediction markets.

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