Are Prediction Markets Threats or Potential Partners to US Sports Leagues?

Prediction markets have divided lawmakers, split sports bettors, and have garnered tremendous interest from investors. Where it was once just Polymarket, Kalshi, Crypto.com and a few others, the space in America is growing continuously – much like sweepstakes casinos did a few years back. All of the legal lawsuits and contradictory stances on prediction markets are nothing new – but here is something that is. Where do sports leagues and organizations stand on these controversial platforms?

The recent Novig x NY Mets partnership has cast a light on a new angle for prediction markets in the US. Namely, as potential sponsors for leagues and sports franchises. And given the massive revenue prediction markets are making, and not just in US betting states, this accrues to serious sponsorship potential for many a sports league or franchise in the US. The MLB already has a partnership, with Polymarket from March of this year. Yet other sports leagues are urging regulators to enforce stricter laws on prediction markets. It raises an interesting question, of how do the sports organizers, franchise owners and even down to the teams themselves – how do they feel about prediction markets?

Novig Partners with Mets

The New York Mets of the MLB are now partnered with Novig, who became their official prediction market partner from July 30th. The announcement means that now, Novig brands will be displayed across the Mets’ social media accounts, in the Citi Field ballpark signage, and during in-game branded broadcasts. This is, for all purposes, similar to gambling sponsorships like what DraftKings (DKNG ), FanDuel, BetMGM and Caesars have with the major leagues, but only this is a direct franchise sponsorship, and of a prediction market instead.

Novig, which was operating with a sweepstakes model until July, is one of several operators that have made the jump into prediction markets – now seen as a similar goldmine to what sweepstakes casinos were in 2023 to early 2025. But now that the tide has turned, and more states are banning sweepstakes, it seems prediction markets are the next best bet for these alternate betting providers. And this NY Mets marketing will serve Novig well.

MLB and FIFA Partnerships

This is the first instance of a US sports franchise forming a partnership with a prediction market, but not the first time a sports organization in the US has created such a partnership. For as mentioned earlier, the MLB announced Polymarket as its official prediction market partner back in March of this year. And, while it is not a US-only organization, there is the example of the Gibraltar-licensed PredictStreet. This Abu Dhabi-based prediction market went live in April, secured the official prediction market partnership rights with FIFA, and then appeared in billboards and perimeter displays everywhere during the World Cup.

Prediction markets, regulated at a federal level, are technically allowed to promote and market themselves during sporting events in the US. However much backlash they get from state authorities, concerned public members, and the sports league organizers themselves (excluding the MLB, and FIFA for that matter).

Could Prediction Markets Become Viable Sports Partners?

They can exploit the federal vs state loophole, have shown that they are popular, and make streams of revenue that have worried major US sportsbooks for the best part of a year. So can prediction markets slowly take over the sports gambling sponsor space too – because it is quite a liberal space in the US. America does not have any strict laws against sportsbooks advertising before, during, or even after sporting games. For that matter, many of the most famous US sports stadiums and arenas actually feature retail sportsbooks inside the stadium.

It is not like in Britain, where gambling sponsors are being phased out. This is the first season in the English Premier League to feature no front of shirt gambling sponsors, and there have been efforts to eliminate gambling sponsors from the sport altogether. Then, there are the laws forbidding athletes under 18 from appearing in gambling ads, the whistle-to-whistle ban (no ads from 5 mins before event starts to 5 mins after it has ended), rules against celebs or high-profile sportspeople appearing in ads, and strict criteria on how the messages in the ads can be conveyed.

Sports Organizations Fighting Against Prediction Markets

America is far more laid back about gambling ads, for the meantime. Back to prediction markets, it is a legal tussle that makes the sweepstakes gambling frenzy look tiny and niche. For it has divided state and federal government with claims and counterclaims of unregulated sports betting, insider trading scandals, integrity issues, and concerns about how prediction markets impact the US public.

Apart from the MLB, which seems to have sided with prediction markets, the NFL, NBA and NHL have all publicly backed regulators to control the products offered by prediction markets. The NFL has asked the CFTC to clampdown on sports prediction markets, ban specific contract types and raise the overall age to 21. The NBA, NHL, and college associations, NCAAF and NCAAB, have all also asked for tighter oversight.

Implications of the Sponsorship

The MLB breaking ranks with the other sports organizations to partner up with a prediction market is not just concerning for the other leagues. It also has implications on the greater political stance on prediction markets, between the state and federal governments.

This is a topic we have covered extensively, and it is perhaps easier to just summarize in a quick timeline. Starting with when Minnesota became the first state to try to ban prediction markets.

• May 18: Minnesota bans prediction markets
• June 1: Illinois introduces per-bet tax on prediction markets
• June 23: Federal regulator blocks Illinois prediction market tax
• July 23: Federal bill to amend the Commodity Exchange Act and force out betting markets
• July 27: Federal courts freeze Minnesota ban on prediction markets
• July 27-29: State lawmakers confront Kalshi at NCSL’s 2026 Legislative Summit

And in the meantime, other states have also put pressure on the regulators and launched their own suits. The courts seem to be swaying in favor of the prediction markets. That doesn’t rule out the possibility, though, of the federal government rethinking the CEA and curbing the sports betting products offered at prediction markets.

A New Trend or a Shot in the Dark?

What happens between the state regulators and federal government is a key issue, but regardless of the final outcome, one thing experts can agree on is that this saga looks set to draw on and on. Continuously new spanners are being thrown in the works from either side, and prediction market operators in the meantime are just expanding and looking forward.

So the spotlight shimmies to the sports leagues, organizers and the franchises themselves. The New York Mets and MLB organization have shown that these types of partnerships are possible, and that will definitely linger on the minds of other sports leagues and franchises. After all, the prediction markets do have the money, the influence, and are riding a massive trend right now.

With teams bracing for the upcoming NFL and NBA seasons, starting in September and October, respectively, the following weeks are crucial if any teams wants to quickly seize the momentum and pick a prediction market partner before the games begin.