Last updated on March 9th, 2026 at 02:38 am
Kalshi, a US-regulated prediction market, has struck a strategic partnership with sports insurance broker Game Point Capital to provide institutional-grade hedging for sports performance bonuses.
The deal, announced on Thursday, 12 February 2026, by CEO Tarek Mansour, follows a record-breaking weekend where the platform processed over $1 billion in trading volume during the Super Bowl. This partnership aims to replace opaque over-the-counter (OTC) reinsurance markets with transparent, exchange-based contracts that enable sports teams and sponsors to manage the financial risks associated with player and coach payouts.
Institutional hedging moves to the exchange
The collaboration with Game Point Capital marks Kalshi’s formal entry into the $9 billion annual sports insurance and reinsurance industry. Game Point Capital, which facilitates hundreds of millions in sports insurance annually, has already begun hedging NBA teams’ exposure on Kalshi. These contracts cover financial liabilities triggered by milestones such as playoff berths or advancing to championship rounds.
On sports hedging.
The sports insurance and re-insurance industry is big: the annual market is around $9 billion and is projected to double by 2030. There are a variety of insurance products including brand sponsorships, game cancellations, team/player performance, off player… pic.twitter.com/ld7kVaxnL5
— Tarek Mansour (@mansourtarek_) February 12, 2026
According to Mansour, the exchange model provides significantly better pricing than traditional markets. One NBA postseason hedge was reportedly priced at 6% on Kalshi, compared to quotes of up to 13% in the OTC market. “Exchanges are a better alternative because they expand liquidity and bring competition,” Mansour stated, noting that Kalshi expects to process tens of millions in similar hedges in the coming months.
Super Bowl records drive retail momentum
The institutional push comes as Kalshi sees unprecedented retail participation. On Sunday, 9 February 2026, the platform recorded its highest single-day volume, with Super Bowl-related trades alone exceeding $500 million. Total platform activity for the day neared $900 million to $1 billion, representing a 2,700% increase compared to the previous year’s championship.
While traditional sports contracts drew heavy interest, “social hedging” in entertainment markets also surged. A contract predicting the opening halftime song by Bad Bunny generated $113.5 million in settlement volume. This retail momentum has propelled Kalshi to the top of the App Store, with the platform reporting 3 million downloads in January 2026 alone.
Regulatory landscape and industry context
Kalshi’s expansion into sports hedging occurs amidst a shifting regulatory environment. On 29 January 2026, CFTC Chairman Michael Selig announced the withdrawal of a proposed rule that would have prohibited political and sports-related event contracts. This pivot reaffirms the CFTC’s exclusive jurisdiction over these derivatives, though Kalshi continues to face legal challenges from state gaming regulators in jurisdictions like Massachusetts and New Jersey.
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