Prediction market platform Kalshi is expanding into the sports insurance sector through a new partnership with broker Game Point Capital. The move targets a global market valued at about $9 billion a year and expected to double by 2030.
The sports insurance industry covers risks such as sponsorship guarantees, game cancellations, and performance-based player bonuses. Game Point Capital issues hundreds of millions of dollars in coverage each year, including insurance tied to team playoff appearances and championship wins.
Under the new partnership, Game Point executed two basketball-related bonus hedges on Kalshi’s exchange. One contract tied to a postseason appearance was priced at 6%, compared with around 12–13% in the traditional over-the-counter market.
Another hedge linked to advancing to the second round was priced at 2% on Kalshi, versus about 7–8% through OTC reinsurance deals. The pricing difference highlights Kalshi’s effort to offer lower-cost alternatives.
Traditionally, insurers negotiate directly with reinsurers such as Lloyd’s of London, where pricing is less transparent and often higher. Kalshi says its exchange model allows multiple counterparties to bid openly, improving price discovery and reducing costs.
Chief Executive Tarek Mansour said liquidity is key to the strategy. During the recent Super Bowl, the platform could have handled a $22 million trade without major price disruption.
Kalshi expects to process tens of millions of dollars in similar transactions in the coming months. The company is positioning prediction markets as a new tool for institutional sports risk management.
