Sports Publication of Si Intends to Delve into Predictions Sector
Sports Illustrated (SI) dives into the prediction market arena with the launch of SI Predict, a new platform for making contracts on sporting events, in partnership with the UK blockchain company Galactic. Expected to hit the global market pending regulatory approval, SI Predict may lift fans' engagement to unforeseen heights, allowing them to express passion beyond their living rooms or local pubs.
In a historical move, SI aims to weave fans into the sporting yarn, as expressed by Dan Dienst, executive vice-chairman of Authentic Brands Group and SI's board of directors. By tapping Galactic's platform, SI offers fans a chance to connect globally with other sports enthusiasts via content based on cherished sporting moments.
Previously, SI walked away from the online bookmaker market following a joint venture with 888 Holdings. This collaboration, SI Sportsbook and Casino, collapsed after 888 Holdings decided to sell or withdraw from the direct US betting operations due to fierce competition and slim profit margins.
Sports Illustrated, with its massive pool of sports fans, entered the online gambling sphere with the 888 Holdings deal back in 2021. However, the partnership's dissolution led to a $50 million compensation settlement for Sports Illustrated.
Before the SI Predict platform goes live, scheduled for the second quarter of 2025, Galactic and SI must adhere to the standards set by the UK Financial Services Authority and the US Commodity Futures Trading Commission (CFTC). The platform's event contracts face scrutiny under the CFTC, as they have been examined in relation to the Kalshi prediction exchange.
Currently, the CFTC is investigating whether Kalshi's contracts can be classified as 'gambling,' per the Commodity Exchange Act (CEA). If this classification is upheld, the contracts would be subject to stricter regulation or could potentially be banned. It's interesting to note that, in March 2025, the Nevada Gaming Control Board (NGCB) and the New Jersey Department of Gaming Regulation demanded that Kalshi halt its sports event contracts in their respective states. While Robinhood agreed to the instruction, Kalshi decided to challenge the orders in court, arguing that the authorities overstepped their jurisdiction.
It's important to highlight that this revised piece incorporates insights into regulatory aspects surrounding event prediction contracts. In the American context, the CFTC has historically played a central role in regulating event contracts while dealing with Kalshi's election-related contracts. However, in a shift observed in 2025, the CFTC voluntarily withdrew a legal challenge against the election event contracts, allowing them to proceed under federal oversight. Despite this, ongoing legal disputes between state regulators and federal agencies suggest that the regulatory environment remains fluid. The UK, on the other hand, primarily regulates prediction markets under either gambling laws or financial services regulations, with a focus on consumer protection and market integrity.
- To ensure a successful launch, Sports Illustrated (SI) and Galactic have agreed to adhere to the standards set by the UK Financial Services Authority and the US Commodity Futures Trading Commission (CFTC) before the SI Predict platform goes live in the second quarter of 2025.
- SI, in partnership with the UK blockchain company Galactic, aims to offer fans a chance to connect globally with other sports enthusiasts, announced with the launch of SI Predict – a platform for making contracts on sporting events.
- Galactic's technology-backed platform may lift fans' engagement to unforeseen heights, as SI Predict, scheduled for global release pending regulatory approval, may alter the landscape of sports-betting and fan participation.
- The event contracts on the SI Predict platform face scrutiny under the CFTC, as they have been examined in relation to the Kalshi prediction exchange, raising questions about their classification as 'gambling' under the Commodity Exchange Act (CEA).
