Sports Illustrated is preparing to venture into the burgeoning prediction market sector, where certain federal and state authorities are raising concerns about the legality of permitting these platforms to take bets on sports events. To address that issue, SI will not accept wagers on game outcomes, but rather on aspects related to the competitions, such as the duration of the National Anthem performance during the Super Bowl.
Sports Illustrated, located in New York City, is collaborating with Galactic, a business-to-business prediction market platform based in London, to introduce SI Predict. The online betting exchange, SI states, will enhance fan involvement “by enabling them to connect directly with lifestyle experiences related to live sports events.”
SI Predict won’t host prediction markets on the Lakers winning tonight’s NBA game, but could provide a contract on whether ESPN’s Stephen A. Smith will be seen courtside in Los Angeles again this season after his recent encounter with LeBron James.
James confronted Smith over comments the TV personality made regarding his son, Bronny James.
CFTC Certification
Prediction markets, spearheaded by Kalshi and Polymarket, faced regulatory examination last year as both platforms aimed to provide contracts on the results of the presidential election. No lawful, regulated sportsbook in any of the 39 states and Washington, DC, where sports betting is allowed, has been authorized to provide odds on elections due to concerns over election integrity.
Additional controversy arose when prediction markets started providing derivative contracts for sports. The Commodity Futures Trading Commission (CFTC), which oversees derivatives markets at the federal level, will soon conduct a roundtable discussion on contracts related to sports events.
SI Predict will remain unaffected as it will not be providing contracts directly tied to game results. SI Predict will aim to obtain a Derivatives Clearing Organization (DCO) license following the Commodity Exchange Act and adhere to all CFTC rules.
"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.”
SI Predict is expected to be released by the end of June 2025. SI Predict is currently accepting customer registrations at sipredict.com.
Video - https://youtu.be/fUhYx2ANbno
SI Sports Wagering Enterprise
Following the US Supreme Court's decision in May 2018 to allow legal sports betting, Sports Illustrated made a significant investment in the sports gaming sector.
SI collaborated with the British bookmaker and online gaming giant 888 Holdings to introduce SI Sportsbooks and Casino. SI Sportsbook ended up functioning in four states, but it struggled to rival market leaders DraftKings and FanDuel.
“Achieving sufficient scale in the US market to generate positive returns within an accelerated time frame is unlikely,” 888 CEO Per Widerström said in winding down the brand a year ago this month.
888 compensated SI with $50 million to end the collaboration.
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