Fantasy sports site Sleeper launched sports prediction markets in time for the Super Bowl through a deal with Kalshi.
The companies announced on Friday that Sleeper’s 10 million users can trade Kalshi’s event contracts on sports, marking the latest entry into the prediction markets vertical for a gaming company. The firms said that more real-world markets will be added soon.
“This is an exciting next step for Sleeper, and a natural extension of our mission to build the most engaging experience for our users,” said Sleeper Hed of Operations Eric Kim. “Partnering with Kalshi gives us the opportunity to bring prediction markets directly into the place where millions of fans already come together around sports.”
Sleeper secured FCM status in January
Sleeper is able to offer prediction markets under Commodity Futures Trading Commission (CFTC) oversight after it secured approval from the National Futures Association (NFA) to operate as a futures commission merchant (FCM) and a swap firm through affiliated entity Sleeper Markets LLC.
Sleeper also offers season-long fantasy leagues, social features and a daily fantasy sports Picks product. It is the third fantasy-focused company to get such approval from the NFA and integrate sports contracts into its existing platform, after PrizePicks and Underdog. Other gaming operators include FanDuel, DraftKings and Fanatics also offer predictions via separate products.
Predictions launch follows dropped CFTC lawsuit
The company has had designs on adding prediction markets to its portfolio for a while.
It applied to become a registered FCM last summer and later wrote to the Office of the Inspector General for the CFTC and the U.S. Department of the Treasury to accuse the CFTC and former acting Chair Caroline Pham of denying its application. It claimed that the commission instructed the NFA not to act on its request without explanation or justification.
Sleeper subsequently filed a lawsuit in D.C. District Court alleging that the CFTC violated the Fifth Amendment and the Administrative Procedures Act and asserting that it violated due process by intervening on the NFA application. The firm dropped the suit upon the NFA approving its registration in Januuary.
Now, it is the latest entrant into an increasingly crowded sports event contract space. It joins PrizePicks as a partner of Kalshi in the gaming space.
“Sleeper is a premier product with a highly engaged userbase,” said Kalshi Chief of Staff Alex Cuoci. “Continuing our brokerage expansion is a key part of Kalshi’s vision for the coming years, and we’re thrilled to have Sleeper join us in time for the Super Bowl.”
