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Sports Illustrated to roll out athletics-linked wagers market

Miguel Vargas during a friendly match between L.A. Dodgers and Kiwoon Heroes on March 17, 2024. (SeongJoon Cho/Photographer: SeongJoon Cho/Bloo)
By Paige Smith Bloomberg

The Sports Illustrated brand is teaming up with U.K.-based media firm Galactic to launch a predictions market allowing users to bet on anything linked to athletic events – except the outcome of games.

The platform, which will be known as SI Predict, joins a growing field of quasi-betting exchanges, including Polymarket and Kalshi, which offer products based on derivatives contracts. SI Predict will be available globally and feature bets on things such as football-game attendance or what song a halftime musician will perform, but not who will win a specific game.

The goal of the platform is “to foster conversation, debate and engagement, allowing users to showcase their expertise without the complexities of gambling,” according to a statement from the companies Wednesday. SI Predict will launch in the second quarter.

“Sports media is no longer a one-way conversation,” Galactic Chief Executive Officer Stuart Stott said in the statement. “Fans want to be involved, and they want their opinions to have weight.”

Since the U.S. Supreme Court struck down a national ban on sports betting in 2018, the market has soared, led by online sports books DraftKings and FanDuel. More recently, national exchanges and trading platforms have entered the fray, with Robinhood Markets Inc., for example, offering derivatives-based products that let users bet on the outcomes of March Madness college-basketball games.

Some online-wagering businesses have at times run afoul of U.S. regulations and been forced to scale back their offerings.

While SI Predict will comply with regulations put in place by the Financial Conduct Authority in the U.K. and the Commodity Futures Trading Commission in the U.S., “as a noncustodial platform, it does not need to be regulated,” Stott said in an emailed response to questions. The platform’s wagers aren’t concerned with the outcome of a specific sports event, but rather on adjacent gambles, such as whether Taylor Swift will attend a certain game. SI Predict’s products “are akin to futures contracts,” Stott said.

Best known for its sports magazine with its iconic swimsuit issue, the Sports Illustrated brand is now owned by Authentic Brands Group Inc., which licenses it out for ventures including ticketing platform SI Tickets, hospitality operator SI Resorts and film, television and podcast producer SI Studios.