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Read Full BioPrizePicks has announced that it has now gone live with prediction markets, but in collaboration with Kalshi rather than Polymarket, as previously stated.
Earlier this week, PrizePicks announced a partnership with Polymarket ahead of the company’s relaunch into the US market. In that announcement, it said it had signed “a multi-year partnership with Polymarket, the world’s largest prediction market.”
However, in a new press release, the company stated that it has now gone live with the rival platform Kalshi. A similarly worded statement declares, “PrizePicks is announcing a multi-year partnership with Kalshi, the largest prediction market in the world.”
It is unclear whether Polymarket was aware of the deal with Kalshi when confirming the partnership earlier in the week. Mike Ybarra, CEO of PrizePicks, gave almost identical statements when confirming deals with the two prediction market operators.
Firstly, he commented, “By entering the U.S. predictions market, PrizePicks will create greater competition, drive innovation and deliver even more value directly to members. Together with Polymarket, we’ll continue to focus on product, innovation, and exceeding our customers’ expectations.”
Then, he stated, “Expanding into prediction markets delivers on what our customers want, innovative products with more ways to play. Together with Kalshi, we will welcome new customers across many states to the PrizePicks experience, and we couldn’t be more excited about the opportunity ahead in this fast-growing space.”
PrizePicks Impatient About Polymarket’s Delayed Launch?
Polymarket is still not live in the US, but is expected to launch in the coming weeks. PrizePicks was surely aware of this fact when signing a deal with the company earlier this week.
However, the deal with Kalshi means it can launch the markets immediately. The ‘Team’ product, which is essentially sports prediction markets, is available in 15 states. States include Texas and PrizePicks’ home state, Georgia, as well as Hawaii, but not California or Florida.
Culture markets, which include politics, are more widely available across 38 states. This still does not include California or Florida, but does allow users in New York, New Jersey, and Pennsylvania to participate.
The company obtained a license from the Commodity Futures Trading Commission (CFTC) in September to act as a futures commission merchant (FCM). This is the same license that allows Robinhood to offer Kalshi’s markets through its app.
When Polymarket launches, it will be interesting to see whether PrizePicks sticks with Kalshi or switches the markets to its rival platform.
Tensions Rise Between Polymarket & Kalshi
While the two companies bear many similarities, there has been no love lost between Kalshi and Polymarket. Last year, Kalshi CEO Tarek Mansour confirmed on a podcast interview that his employees asked social media influencers to promote memes about the FBI’s raid on the home of Polymarket CEO Shayne Coplan.
He accused Polymarket of spreading misinformation online about Kalshi. On the podcast, he stated, “Both companies have been doing this,” adding that his team believed Polymarket was behind some social media posts suggesting that “we also got raided by the FBI. That did not happen,” he said. “We did not get raided by the FBI.”
Coplan later described Kalshi as a “copycat” platform. The primary issue will be that the two companies are competing for maximum liquidity in their respective markets. If this becomes split, then the companies take less commission, and the value offered to users will also be less appealing.
As more platforms enter the prediction market space, including DraftKings and FanDuel, the competition for users will intensify.
When announcing deals with PrizePicks, Mansour and Coplan were both optimistic about the potential of the partnership. Coplan stated, “As we prepare to return to the US, this partnership shows how prediction markets can enhance fandom while setting a new standard for interactive, regulated sports engagement.”
Mansour, meanwhile, said, “This is a game-changing moment, and we’re excited to be the first to fuel and supercharge the PrizePicks fan experience.”
The “we’re excited to be the first” was perhaps a dig at his rival. How it all plays out is anyone’s guess, but with the continued expansion, there may well be a market where you can predict what will happen.
