One of the biggest names in the NBA and sports in general, Giannis Antetokounmpo, has announced he is now a shareholder of one of the leading prediction platforms, Kalshi, and will partner with the company at live events.
Kalshi’s Partner Is a Slam Dunk
Prediction market leader Kalshi has hauled in a big celebrity endorser, one that is nearly seven feet tall, and he is so well-known that NBA fans recognize who he is by just hearing his first name—Giannis. The 2x MVP and 2021 NBA world champion announced that he is now a shareholder in Kalshi and will be partnering with them for marketing purposes and at company events.
Giannis Antetokounmpo recently posted on Instagram the following:
“The internet is full of opinions. I decided it was time to make some of my own.
Today, I’m joining Kalshi as a shareholder.
We all on Kalshi now.”
Antetokounmpo is now the first basketball player to become a shareholder in the prediction market platform, but still owns less than 1%, which is within the guidelines set forth by the NBA’s 2023 Collective Bargaining Agreement. Players are allowed to have passive investments under 1% in sports betting companies but cannot own, operate, or manage sportsbooks.
Since Kalshi is not even considered a sportsbook by the traditional definition, it wouldn’t technically matter how much of a position he has. But to avoid testing the legal limits, the Bucks superstar owns less than 1%, which is still valued at approximately $100 million.
Moreover, Kalshi announced that Giannis is forbidden from trading on NBA markets due to its insider trading policies.
“Giannis is a legend,” said Kalshi CEO Tarek Mansour in a statement. “He’s exactly the type of long-term partner we want to align our growing brand with, and we couldn’t be happier he’s on board.”
Walking a Tightrope
Kalshi continues to walk a fine line between prediction platform and bookmaker, but, thus far, the agency that licenses it, the Commodity Futures Trading Exchange (CFTC), has steered clear of any disputes that have arisen with state gaming agencies.
Prediction market leader, Kalshi, has scored early legal victories against those gaming commissions trying to banish them from their jurisdictions, citing that prediction markets offering sports event contracts are usurping their authority by not being licensed by those gaming authorities nor paying licensing fees and state taxes on those revenues derived because of it.
Court Rulings Grow More Nuanced
However, the winds of fortune could be shifting, as recent court rulings have been more nuanced and less favorable toward the prediction platforms. There remains no settled case law, and the legal battle continues to rage.
However, newly installed CFTC commissioner Michael Selig has stated his agency will rewrite the rule book to accommodate the modern landscape to include blockchain, cryptocurrency, and a host of other new technologies.
As for taking a position on prediction platforms offering sports event contracts in all 50 states and circumventing the rules for traditional sportsbooks, Selig has not issued a definitive statement, but his agency may adopt rules to address those concerns.
