Kalshi Inks Sports Hedging Deal After $1B Super Bowl Trading Surge

TLDR

• Kalshi and Game Point hedge NBA team bonus payouts on exchange
• Super Bowl Sunday trading on Kalshi exceeded $1 billion
• Kalshi recorded $9.6 billion in January, up 45% from December
• OTC quotes were higher than exchange pricing on two NBA hedges

Kalshi has inked a sports hedging deal with Game Point Capital on the heels of more than $1 billion in Super Bowl trading. The partnership marks Kalshi’s entry into institutional sports performance hedging.

The agreement comes after record activity on the prediction marketplace. Kalshi reported $9.6 billion in trading volume in January, a 45% rise from December, according to The Block’s data dashboard.

Kalshi enters institutional sports hedging

Kalshi announced the partnership with broker Game Point Capital on Thursday. Chief executive Tarek Mansour shared the news on X. The deal allows professional sports teams to hedge performance bonus payouts through Kalshi’s exchange.

Game Point Capital provides sports insurance and reinsurance coverage. The firm focuses on policies tied to team and player performance bonuses. These bonuses can be triggered by playoff berths or championship wins.

Mansour described the exchange model as an alternative to the over-the-counter reinsurance market. He said that market is restrictive and opaque. He also said the sports insurance and reinsurance sector represents about $9 billion annually and is projected to double by 2030.

According to Mansour, Game Point executed its first hedges on Kalshi last week. The trades involved two different NBA teams. The contracts covered bonuses linked to postseason performance.

Pricing gap between exchange and OTC market

One contract hedged a bonus tied to a team reaching the playoffs. The contract priced at 6% on Kalshi. Comparable quotes in the OTC market ranged from 12% to 13%.

A second contract covered a bonus for advancing to the second round. That contract priced at 2% on the exchange. OTC quotes ranged from 7% to 8%, according to Mansour’s post.

“Exchanges are a better alternative because they expand liquidity and bring competition,” Mansour wrote on X. He said multiple counterparties compete in an open marketplace to improve pricing. He added that tens of millions in similar hedges are expected from Game Point in the coming months.

Sports trading drives platform growth

Kalshi offers contracts tied to financial, weather, and cultural events. However, sports trading has driven much of the recent growth. Activity increased in September 2025 with the start of the NFL season.

Mansour reported about $441 million in trading during the first four days after the NFL kickoff. The momentum continued into early 2026. Super Bowl Sunday alone generated more than $1 billion in trading volume.

Mansour told CNBC that consumers are drawn to diverse trading options tied to a single event. The surge in activity coincided with broader expansion in U.S. sports-related prediction markets.

Kalshi and Polymarket recorded more than $17 billion in combined January trading volume. Kalshi accounted for $9.6 billion, while Polymarket posted about $7.7 billion. Both platforms reported monthly increases of more than 40%.

Regulatory challenges continue

The growth in trading volume has occurred amid legal disputes at the state level. Kalshi is appealing a Nevada ruling that requires compliance with state gaming rules. The company also faces litigation in Massachusetts.

A Massachusetts judge ruled that Kalshi cannot offer sports contracts without a state gaming license. In Tennessee, a federal judge temporarily blocked state regulators from enforcing a cease-and-desist order against Kalshi’s sports contracts.

Polymarket has also filed a federal lawsuit against Massachusetts. The company argues that Commodity Futures Trading Commission jurisdiction preempts state gambling laws.

Kalshi’s sports hedging deal with Game Point comes as the company expands its institutional offerings and records high trading volumes, including over $1 billion during Super Bowl Sunday.

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