With some federal and state regulators questioning whether it is lawful to allow such platforms to collect wagers on sporting events.
Sports Illustrated is preparing a wager on the nascent prediction market sector. In order to allay that worry, SI will only wager on competition-related issues, such as the length of time the National Anthem will be sung at the Super Bowl, rather than game results.
Sports Illustrated, located in New York City, is launching SI Predict in collaboration with Galactic, a business-to-business prediction market platform based in London. SI claims that by “enabling them to interact directly with lifestyle moments adjacent to live sports events,” the online betting exchange will increase fan engagement.
SI Predict won’t run prediction markets on whether the Lakers will win tonight’s NBA game, but instead, might offer a contract on whether ESPN host Stephen A. Smith will sit courtside again this season in Los Angeles after being confronted by LeBron James earlier this month.
James got in Smith’s face over remarks the television personality made about his son, Bronny James.
License from the CFTC
When Kalshi and Polymarket attempted to provide contracts on the results of the presidential election last year, the prediction markets came under governmental scrutiny. Because of concerns about election integrity, no legal, regulated sportsbook has been authorized to provide odds on elections in any of the 39 states and Washington, DC, where sports gambling is legal.
When prediction markets started to offer sports derivative contracts, further debate erupted. A roundtable on contracts for sporting events will soon be held by the Commodity Futures Trading Commission (CFTC), which oversees the federal derivatives markets.
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Since SI Predict won’t be directly issuing contracts based on game results, it won’t be affected. SI Predict will adhere to all CFTC rules and apply for a Derivatives Clearing Organization (DCO) registration under the Commodity Exchange Act.
Sports Illustrated has always been about engaging fans in the stories that shape the world of sports,” said Dan Dienst, chair of Sports Illustrated. “With SI Predict, we’re excited to watch Galactic roll out its platform to fans and enthusiasts and enable them to express their insights beyond the sofa or neighborhood tavern and engage passionately with a more global audience on the content adjacent to the sport moments they love.”
It is expected that SI Predict will launch prior to the end of June 2025. SI Predict is currently accepting new members at sipredict.com.
SI Sports Betting Company
Sports Illustrated made a significant investment in the sports gaming sector following the US Supreme Court’s May 2018 ruling that legalized sports betting.
SI launched SI Sportsbooks and Casino in collaboration with 888 Holdings, a British bookmaker and online gambling behemoth. In the end, SI Sportsbook operated in four states, but it was unable to compete with DraftKings and FanDuel, the market leaders.
When 888 CEO Per Widerström was shutting down the brand a year ago this month, he stated, “It is unlikely that we will achieve sufficient scale in the US market to generate positive returns within an accelerated time frame.”
For the dissolution of the partnership, 888 paid SI $50 million.
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