Prediction Market Roundup: January News Updates
The quiet holiday season is over for the prediction market news cycle. The steady stream that became the norm last year is back in full swing with a flood of developments, including a new VIP program for high-volume Kalshi traders. Polymarket is making deals left and right, while chatter about some curiously timed trades has been all over the headlines.
- Image
Kalshi Debuting VIP Program
As the prediction market landscape becomes more competitive, all platforms share a common goal: to be a go-to destination. To that end, Kalshi is making a move to make the platform that much more appealing. A platform spokesperson confirmed to Business Insider the rollout of Kalshi Platinum, a loyalty program for high-volume traders. Perks include:
- Merchandise and referral incentives
- Tickets to Kalshi dinners and in-person events
- Access to a dedicated support manager
Benefits for frequent users are common practice across multiple sectors, including retail, travel, iGaming, and financial trading. No word on whether the program will eventually extend to all users and offer the chance to climb the ranks. For now, Kalshi is providing another reason for traders to stick around. It’ll be interesting to see if other platforms are inspired to do the same.
Deals Continue For Polymarket
Polymarket continues to extend its reach. The company has inked a pair of high-profile deals in recent days. First up, the platform is now the official prediction market platform of the NHL’s New York Rangers.
 | “The Rangers have one of the most dedicated fanbases in sports, and this partnership introduces a new, dynamic layer of engagement to the fan experience. Prediction markets offer fans a real-time, interactive way to connect with the game, and the Rangers are an ideal franchise to bring this experience to a broader audience.” - Shayne Coplan, Founder and CEO of Polymarket |
While other leagues have taken a more cautious approach toward prediction markets, the NHL has not. Back in October, the league inked deals with both Kalshi and Polymarket. Weeks later, Kalshi made headlines by announcing a partnership with the Chicago Blackhawks.
Polymarket will also be extending its media presence, thanks to a deal with Dow Jones Media. The exclusive deal will bring the platform’s prediction market data to publications under the umbrella, including the Wall Street Journal and Barron’s.
Deals have been coming fast and furious for prediction market platforms as legacy media outlets want in on the craze. Last month, Kalshi signed deals with both CNN and CNBC, which incorporate event-driven market data into their coverage.
Big Profits On Maduro Capture Raise Questions
In the wee hours of Saturday, January 3, Venezuelan leader Nicolas Maduro was captured at his home by U.S. forces and quickly transported to New York City to face charges. Naturally, the stunning development quickly dominated headlines.
Unfortunately, it also brought prediction markets into the spotlight in an unflattering way. As Axios reported, a relatively new Polymarket account netted over $400k on what happened. Additionally, there was a steady spike in trading activity on contracts tied to Maduro’s ouster prior to the announcement of his capture.
It didn’t take long for social media to catch on, and scores of headlines followed. The optics are horrible, leading many to draw the conclusion that this was an insider trading incident. Soon thereafter, Rep. Ritchie Torres (D-N.Y.) announced he was introducing legislation that would ban government officials from trading on prediction markets.
In a post on LinkedIn, Kalshi CEO Tarek Mansour noted that “Insider trading is banned on Kalshi (and always has been).” Headlines have started to fade as the news cycle has moved along, but it’s tough to see this one being swept under the rug and memory-holed.
Related News
