Sports Illustrated Enters Prediction Market with Launch of Si Predict

Sports Illustrated is venturing into the fledgling prediction market space through a new platform called SI Predict, developed in partnership with UK-based media firm Galactic.

Unlike traditional sports betting focused on game outcomes, SI Predict will offer event derivative markets for adjacent aspects of sports, such as stadium attendance, halftime show details or other non-score-based outcomes.

The launch comes as interest grows around decentralized prediction markets enabled by blockchain technology. On platforms like Polymarket and Kalshi, users can trade event derivative contracts that pay out based on whether predictions come true, similar to how stock markets operate.

SI Predict will initially launch in Q2 2023, providing markets tied to major sporting events globally. The platform is positioned to comply with regulations from the UK Financial Conduct Authority and US Commodity Futures Trading Commission.

As a non-custodial platform, SI Predict will not require traditional gambling licenses to operate. This could allow broader reach than the licensed sportsbooks from DraftKings, FanDuel and others that have led the sports betting world since the lifting of PASPA in 2018.

Prediction markets are lauded for being transparent, permissionless and better incentivized for accurate predictions compared to traditional pundits or polls. SI Predict aims to bring these strengths to its sports-savvy audience through event derivatives on adjacent sports outcomes.

With SI Predict, Sports Illustrated continues innovating at the intersection of sports, media technology and betting. If adopted widely, fan engagement around major events could fundamentally shift towards real-time predictive gaming.