In the span of 12 months, prediction markets went from crypto-native curiosity to the fastest-growing engagement format in professional sports. The NHL signed with Kalshi. MLS and UFC partnered with Polymarket. The New York Rangers named Polymarket their official prediction markets partner in January 2026. And Polymarket alone reported $1.94 billion in sports-related trading volume in 2025 — a figure that surged to $3 billion in Q4 alone.

For streaming platforms, the message is clear: prediction markets aren't a sideshow. They're becoming foundational infrastructure for how fans interact with live sports content.

This guide breaks down why prediction markets are exploding in sports media, how they differ from traditional sports betting, what the major league partnerships look like, and how streaming platforms can integrate prediction-style engagement directly into the viewing experience.

What Are Prediction Markets — and Why Sports?

Prediction markets are platforms where participants buy and sell contracts based on the outcome of future events. Unlike traditional sportsbooks, which set odds through proprietary models, prediction markets derive their pricing from the collective wisdom of all participants. The result is a real-time, crowd-sourced probability engine.

Sports is a natural fit for prediction markets for three reasons. First, the events are frequent, well-defined, and time-bound — every game, every quarter, every possession produces resolvable outcomes. Second, fans already have strong opinions about what will happen next, making them natural participants. Third, the emotional engagement of sports creates sustained attention that prediction platforms can monetize through trading volume.

The total addressable market tells the story. Blockchain-based prediction markets in live entertainment are projected to grow from $2.68 billion in 2025 to $48.5 billion by 2030, representing a compound annual growth rate of 78.49%. Analysts project the broader global prediction market will expand to $95.5 billion by 2035.

The League Partnership Wave

The pace of major league prediction market partnerships in 2025-2026 has been remarkable.

NHL and Kalshi

In October 2025, the NHL entered the prediction market space by partnering with Kalshi, one of the first federally regulated prediction market exchanges in the United States. Kalshi was granted official NHL data, intellectual property rights, and league marks — enabling officially branded NHL prediction contracts. This wasn't a sponsorship deal. It was a data and product integration, giving Kalshi the ability to create markets tied directly to official game feeds.

MLS and Polymarket

MLS and Polymarket announced a multi-year collaboration designating Polymarket as the league's official and exclusive prediction market partner. The partnership is specifically designed to create interactive digital experiences that aggregate fan sentiment around key moments — goals, penalty decisions, player substitutions. The emphasis on "fan sentiment" rather than "wagering" is an important distinction in how these partnerships are being positioned publicly.

UFC and Polymarket

TKO Group Holdings (parent of UFC and Zuffa Boxing) partnered with Polymarket to introduce real-time prediction markets into live combat sports events. The UFC integration is particularly significant because combat sports have discrete, binary outcomes that lend themselves naturally to prediction contracts — and the fan base skews young and digitally native.

New York Rangers and MSG

Madison Square Garden Sports Corp. named Polymarket the official and exclusive prediction markets partner of the New York Rangers in January 2026. The collaboration extends beyond the arena to MSG Networks, where Polymarket becomes the presenting partner of "In-Game Polls" and hosts a dedicated post-game segment. This is notable because it represents prediction markets integrating directly into the broadcast experience, not just the digital layer.

Prediction Markets vs. Sports Betting: The Key Differences

For streaming platforms evaluating which engagement format to integrate, the distinction between prediction markets and sports betting is critical — and increasingly contested.

Regulatory structure: Traditional sports betting is regulated state-by-state under gambling frameworks. Prediction markets like Kalshi operate under federal CFTC (Commodity Futures Trading Commission) regulation as designated contract markets, arguing they are financial instruments rather than gambling products. This creates a different (and in some cases more favorable) regulatory path.

User experience: Sports betting involves placing a wager through a licensed sportsbook at odds set by the book. Prediction markets involve buying and selling contracts at prices set by the market. The mechanic feels more like trading than betting, which appeals to a different demographic.

Fan engagement model: Traditional betting is transactional — you place a bet and wait. Prediction markets are dynamic — contract prices move in real time as the game unfolds, creating ongoing engagement. Fans can buy, sell, and trade positions throughout the event.

The legal tension: Not everyone agrees these categories are distinct. Nevada has taken action against Kalshi, arguing that event contracts on sports outcomes are functionally gambling. This regulatory question will shape the market for the next several years.

What This Means for Streaming Platforms

The league partnerships above are primarily data and IP deals. The streaming integration opportunity — embedding prediction-style engagement directly into the live viewing experience — is still wide open.

Here's why that matters:

Engagement Duration

Research shows that interactive viewers watch 33% longer than passive viewers. Prediction-style features (polls, outcome picks, probability trackers) give fans a reason to stay engaged during breaks in the action — the exact moments when passive viewers are most likely to leave or switch to a second screen.

Monetization Layers

Prediction markets create new monetization surfaces beyond traditional ad inventory. Sponsored markets ("Tonight's BMW Play of the Game — will Curry hit the game-winner?"), contextual overlays triggered by prediction outcomes, and data-driven targeting based on prediction behavior all represent revenue streams that don't exist in a traditional broadcast.

First-Party Data

Every prediction a viewer makes is an explicit signal of engagement, interest, and intent. A fan who consistently predicts outcomes for Golden State Warriors games is revealing affinity data that's more valuable — and more privacy-compliant — than behavioral tracking.

Gen Z Audience Acquisition

Platforms like Fanatics Markets and Underdog are specifically designed for casual fans rather than serious traders. The simplified mechanics — pick an outcome, see if you're right — appeal to Gen Z audiences who've grown up with gamified digital experiences. For streaming platforms trying to attract younger viewers, prediction integration is a more natural on-ramp than traditional ad-supported viewing.

Integrating Prediction-Style Engagement Into Streaming

Streaming platforms don't need to become prediction market exchanges. The most effective approach is integrating prediction-style mechanics — picks, polls, probability displays, leaderboards — directly into the viewing experience while partnering with or handing off to licensed platforms for any financial transactions.

Effective integration looks like this:

In-stream prediction overlays: Non-disruptive UI elements that surface prediction prompts tied to game state. During a fourth-quarter timeout, the overlay might ask "Will the Warriors score first after the break?" These prompts are generated by real-time event triggers synced to live data feeds, ensuring contextual relevance.

Real-time probability displays: Visual elements showing crowd-sourced win probabilities that shift in real time as the game unfolds. These create a second narrative layer on top of the broadcast without requiring any action from the viewer.

Gamified prediction leagues: Season-long prediction competitions with leaderboards, achievement badges, and rewards. These features drive return visits and habitual engagement — the same loyalty mechanics that keep users coming back to fantasy sports platforms.

Sportsbook and prediction market handoffs: For platforms that want to offer financial transactions, the cleanest approach is an in-stream interface where viewers make picks and build prediction slips, with a seamless handoff to a licensed prediction market or sportsbook to complete the transaction. The viewer never leaves the stream, but the financial transaction happens in a properly regulated environment.

The Opportunity Ahead

Prediction markets are still in the first inning of sports media integration. The league deals are signed. The regulatory framework is forming. The audience appetite is proven by billions in trading volume. But the viewing experience itself — the place where most fans actually engage with live sports — is still largely untouched.

The platforms that integrate prediction-style engagement natively into the streaming experience, rather than bolting it on as a second-screen afterthought, will capture the next wave of fan attention and the monetization that comes with it.

For streaming executives evaluating this space, the key questions are: Does your platform support real-time event-triggered content delivery? Can you surface interactive elements without disrupting the viewing experience? And do you have the SDK architecture to integrate with third-party prediction and betting partners?

The leagues have made their move. The audience has voted with $3 billion in quarterly trading volume. Now it's the streaming platforms' turn.