Sports Illustrated partners with Galactic to launch sports predictions markets

Sports Illustrated is partnering with UK-based media firm Galactic to launch SI Predict, a global predictions market where users can bet on aspects of sports events, except game outcomes, according to Bloomberg.

Similar to platforms like Polymarket and Kalshi, SI Predict will offer bets on non-traditional elements such as stadium attendance or halftime show setlists, but not on which team will win.

The goal, according to the companies, is to foster conversation and engagement, allowing fans to showcase their expertise without the complexities of traditional gambling. SI Predict is expected to launch in the second quarter.

“Sports media is no longer a one-way conversation,” Galactic Chief Executive Officer Stuart Stott said in a statement. “Fans want to be involved, and they want their opinions to have weight.”

With U.S. sports betting booming since the 2018 Supreme Court ruling that struck down a national ban, derivatives-based platforms like Robinhood, Polymarket, and Kalshi have now also recently sought to enter the lucrative space. However, some of these platforms have faced regulatory scrutiny and been forced to adjust their offerings. 

The U.S. Commodity Futures Trading Commission (CFTC) has been reviewing event contracts, especially after platforms like Kalshi introduced politically focused markets ahead of the 2024 U.S. presidential election. The regulator has previously asked companies such as Robinhood and Crypto.com to pause some of their event contracts.

Sports Illustrated’s move comes as Acting CFTC Chair Caroline Pham plans roundtable discussions on the issue. The MLB has also urged regulators to establish an “integrity framework” due to concerns over data tracking and market transparency.

Additionally, the Nevada Gaming Control Board (NGCB) has barred Kalshi from operating in the state, citing violations of gaming laws.

Meanwhile, SI Predict said it will adhere to UK Financial Conduct Authority and CFTC regulations, though as a non-custodial platform, it does not require direct regulation. Instead of betting on game results, users can place wagers on adjacent events, like whether Taylor Swift will attend a game. Stott likened these bets to futures contracts rather than traditional sports gambling in a statement to Bloomberg.

The launch follows SI Sportsbook and Casino’s closure after Sports Illustrated’s parent company, Authentic Brands Group, parted ways with 888 Holdings (now Evoke plc). 888 exited the U.S. market, paying a $25 million termination fee, with another $25 million due between 2027 and 2029.

Sports Illustrated also licenses SI Tickets, SI Resorts, and SI Studios.