Sports Illustrated is preparing to invest in the burgeoning prediction market sector, even as certain federal and state authorities raise concerns about the legality of permitting these platforms to take bets on sports events. To address that issue, SI will not accept wagers on the results of games, but rather on related aspects of the events, such as the duration of the National Anthem performance during the Super Bowl.
Sports Illustrated, located in New York City, is collaborating with Galactic, a London-based business-to-business prediction market platform, to introduce SI Predict. The online betting exchange, SI claims, will enhance fan involvement “by enabling them to engage directly with lifestyle experiences related to live sports happenings.”
SI Predict will not conduct prediction markets on the outcome of tonight’s NBA game involving the Lakers, but could instead provide a contract on whether ESPN's Stephen A. Smith will be present courtside again this season in Los Angeles after his recent confrontation with LeBron James.
James confronted Smith over comments the TV personality made regarding his son, Bronny James.
CFTC Certification
Prediction markets, with Kalshi and Polymarket at the forefront, faced regulatory examination last year as both services aimed to provide contracts based on the presidential election results. In the 39 states and Washington, DC, where sports betting is allowed, no legal, regulated sportsbook has been authorized to provide odds on elections because of concerns about election integrity.
Additional controversy arose when prediction markets started providing derivative contracts for sports. The Commodity Futures Trading Commission (CFTC), which oversees federal derivatives markets, is set to hold a roundtable on contracts linked to sports events.
SI Predict will remain unaffected as it will not engage in contracts directly tied to game results. It aims to obtain a Derivatives Clearing Organization (DCO) license in accordance with the Commodity Exchange Act and adhere to all CFTC regulations.
"Sports Illustrated has always been about engaging fans in the stories that shape the world of sports,” said Dan Dienst, chair of Sports Illustrated. “With SI Predict, we’re excited to watch Galactic roll out its platform to fans and enthusiasts and enable them to express their insights beyond the sofa or neighborhood tavern and engage passionately with a more global audience on the content adjacent to the sport moments they love.”
SI Predict is expected to debut before the conclusion of June 2025. SI Predict is currently accepting customer registrations at sipredict.com.
SI Sports Wagering Enterprise
Following the US Supreme Court's decision in May 2018 to allow legal sports betting, Sports Illustrated made a significant investment in the sports gaming sector.
SI collaborated with British bookmaker and online gaming giant 888 Holdings to introduce SI Sportsbooks and Casino. SI Sportsbook ultimately functioned in four states, yet it struggled to compete with market frontrunners DraftKings and FanDuel.
“Achieving sufficient scale in the US market to generate positive returns within an accelerated time frame is unlikely,” 888 CEO Per Widerström said in winding down the brand a year ago this month.
888 compensated SI with $50 million to terminate the partnership.
