Sports Publication Seeks Entry into Prediction Market Sector
Rewritten Article:
Get ready to place unique contracts on sports events with Sports Illustrated (SI)! After failing in the online bookmaker market, SI is taking a differing approach and jumping into the predictions market, partnering with UK blockchain platform Galactic. This new platform, SI Predict, is currently awaiting regulatory approval, and once it's granted, you'll be able to show off your sports knowledge in various international markets.
According to Dan Dienst, executive vice chairman of Authentic Brands Group and chairman of SI's board of directors, SI Predict aims to engage fans more deeply in the world of sports:
'"We wanted to provide fans a chance to tap into the stories defining the sports universe."'
SI chose Galactic to extend its platform to sports enthusiasts, allowing them to express their passions beyond the couch or local pub and connect with a global audience through content related to their favorite sporting moments. Check out the project's promotional video, which highlights this unique concept.
SI Predict's launch followed the closure of SI's joint venture with 888 Holdings. In March 2024, 888 Holdings announced that it had terminated its deal with SI due to intense competition and low margins. Sports Illustrated had entered the online bookmaker market in an exclusive deal with 888 Holdings in 2021, but their joint venture, SI Sportsbook and Casino, was short-lived, with a total compensation of $50 million for canceling the contract.
Event contracts are under close regulatory scrutiny before going to market, scheduled for the second quarter of 2025. Galactic and SI must ensure their platform meets the standards set by the UK Financial Services Authority and the US Commodity Futures Trading Commission (CFTC). The CFTC is currently investigating whether the contracts offered by Kalshi prediction exchange, another platform like SI Predict, fall under the category of 'gambling' as defined by the Commodity Exchange Act (CEA). If this is determined, the contracts would be subject to stricter regulation or face potential bans.
As it stands, the Nevada Gaming Control Board (NGCB) has initiated proceedings requiring Kalshi to stop offering contracts for sporting events in the state, while the New Jersey Department of Gaming Regulation (DGE) issued a similar injunction to Kalshi and Robinhood. While Robinhood agreed to the requirement, Kalshi has decided to challenge the orders in court, arguing that the states are overstepping their authority.
This article was first published in Russian on April 2, 2025.
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Additional Insights:
SI Predict's new platform for sports predictions also involves crypto-based transactions or tokens, making it subject to regulatory developments around cryptoassets. The UK’s HM Treasury is currently shaping the regulatory environment with the Financial Services and Markets Act 2000 (Regulated Activities and Miscellaneous Provisions) (Cryptoassets) Order 2025, which sets out a new regulatory regime for cryptoassets, including exchanges and related operators. A final version of this legislation is planned for publication "at the earliest opportunity" after a consultation period ending May 23, 2025. Once finalized, this regulatory framework will likely cover platforms like SI Predict if they involve qualifying cryptoassets or stablecoins as defined in the draft legislation. Thus, SI Predict's compliance and regulatory approval are currently in progress, tightly connected to the implementation of the UK crypto regulatory framework led by HM Treasury.
With the launch of SI Predict, Sports Illustrated is exploring a new avenue in sports enthusiast engagement, delving into technology-driven sports predictions and sports-betting using cryptocurrency transactions.The forthcoming regulatory approval of SI Predict's sports-betting platform is not only pivotal for the platform's launch but also closely tied to the UK's evolving regulatory framework for cryptoassets, as established by the Financial Services and Markets Act 2000 (Regulated Activities and Miscellaneous Provisions) (Cryptoassets) Order 2025.*
