Full Breakdown
Kalshi Secures Multi-Year Partnerships with Five MLB Teams Amid Ongoing Legal Battles
8/26/2026, 12:12:55 AM
Core Partnership Announcement
Kalshi, a federally regulated prediction-market exchange, announced exclusive multi-year brand partnerships with the Atlanta Braves, Boston Red Sox, Los Angeles Dodgers, San Diego Padres and San Francisco Giants. The deals provide in-stadium LED signage, naming rights to the Dodgers’ Gold Glove Bar, and fan-activation programs across the clubs’ venues and digital channels. The agreements were unveiled on a Tuesday and represent commercial relationships with one-sixth of Major League Baseball’s 30 clubs.
Background & Context
Prediction markets have accelerated their entry into professional sports. In March, MLB named Polymarket its official league-level prediction-market partner. Since then, individual clubs have signed separate deals: the New York Mets partnered with Novig in July, and the Yankees secured a Polymarket agreement earlier this month. Kalshi, founded in 2018, operates as a Designated Contract Market under CFTC oversight, positioning its sports contracts as federally regulated derivatives rather than state-licensed sportsbooks. This regulatory stance has sparked lawsuits in multiple states that argue the contracts constitute illegal sports wagering.
Data & Statistics
- Baseball-related trading volume on Kalshi is reported to be 36 times higher year-over-year.
- Nearly 13 billion baseball contracts were traded on the platform in 2026, up from roughly 355 million the prior year (Fortune).
- The five new club partners account for one-sixth of MLB’s franchises.
Official Statements & Responses
Kalshi’s Head of Sports Partnerships, Adam Barrick, said the company aims to extend existing fan engagement on its platform to the partnered clubs. Red Sox EVP Troup Parkinson described the deal as a “natural fit” for reaching Fenway fans. Dodgers senior vice-president of global partnerships Lorenzo Sciarrino called Kalshi an “exciting new category” for fan connection. Giants senior vice-president of partnerships Steve Tseng emphasized delivering “unmatched experiences” for supporters. MLB declined to comment on the specific agreements.
Criticism & Opposition
Senator Richard Blumenthal (D-Conn.) called MLB’s involvement with prediction-market platforms “astonishing and appalling,” suggesting the league is complicit in a controversial practice. New York Attorney General Letitia James filed a lawsuit in July alleging that Kalshi operates an illegal gambling operation and sought a temporary restraining order and $36 billion in damages. State attorneys general in California, Georgia and Massachusetts have also challenged Kalshi’s claim that its contracts fall solely under federal jurisdiction, arguing they are effectively sports bets.
Conflicting Reports & Gaps
Legal outcomes remain mixed. The U.S. Court of Appeals for the Third Circuit ruled 2-1 in favor of Kalshi on April 6, 2026, holding that the Commodity Exchange Act preempts state gambling enforcement in New Jersey. Conversely, trial courts in Nevada, Maryland, Massachusetts and Ohio have issued rulings against Kalshi, finding its contracts subject to state gambling laws. No financial terms of the MLB club deals have been disclosed, and the pending decision of the Massachusetts Supreme Judicial Court leaves the preemption question unresolved.
What’s Next
Kalshi is in talks with MLB about a potential league-wide partnership, while the Massachusetts Supreme Judicial Court continues to consider arguments over federal preemption. The outcome of these legal challenges will shape whether additional clubs pursue similar agreements and how prediction-market platforms can operate within the U.S. sports landscape.
