A big partnership could be coming between a leading prediction market site and the world of esports. Riot Games reportedly has had discussions with both Polymarket and Kalshi, possibly setting the stage for a massive announcement in the near future.
Although no deal is finalized, the potential pairings could theoretically inject mainstream esports exposure into the prediction market industry, while granting Kalshi and Polymarket access to unique data to better equip the sites to build markets around esports matches.
Riot Games Nears a Prediction Market Partnership
It’s unknown if Riot Games will sign on the dotted line with both Kashi and Polymarket, while more prediction markets could be involved in ongoing talks.
The reported discussions involve Riot’s esports business, which could lead to deals involving the industry’s biggest properties: VALORANT and League of Legends.
To this point Riot Games has not committed to a deal, but has cited a possible prediction markets partnership as viable due to its meteoric rise.
Riot Games has to this point been cautious when it comes to the company’s involvement with any deals that seem gambling related. Prediction markets having a unique distinction of trading rather than gambling may get their foot in the door.
A deal between Riot Games and either Kalshi or Polymarket would be huge for all parties involved, granting a global esports audience as well as a lucrative sponsorship.
The Bigger Story: The GRID Esports Connection
Any partnership deal between Riot Games and Kalshi or Polymarket would be massive news.
The bigger story, however, may actually be what lies underneath: the esports industry gets more streamlined than ever on a global level. In turn, Kalshi and/or Polymarket would get access to top shelf esports data, which would allow them to generate the best esports event contract products available.
With Riot’s investment in GRID Esports in 2023, the company could provide an important esports data infrastructure that would greatly enhance the esports offering for any prediction markets it partners with.
Riot’s impact goes beyond just the data infrastructure it can bring to the table, of course. It also dictates esports competitions and sponsorships for major events, making it the perfect partner with Kalshi and Polymarket both looking to expand their reach and improve their esports product.
Could Esports Become the Backbone of Prediction Markets?
The reach esports has globally already is vastly underrated. This isn’t regular sports, as Kalshi and Polymarket would gain the ability to tap into a totally new market at a high level.
The upside is obvious; any prediction markets dealing with Riot Games would enhance their reach, forging paths to a variety of new markets they can execute more accurately and more easily, and also tapping into previously unknown user base sources.
There is a downside, however. The main issue would be integrity, especially given the public rise of prediction market insider trading. That could even end up being a key hiccup in partnership negotiations.
The Trade Handle Prediction Markets Take
The big takeaway is how meaningful it is that a Riot Games and prediction markets deal is even being discussed.
This would be huge for esports in its plight to expand its reach globally, but it would also provide yet another boost to an already rapidly growing prediction market industry.
Whether a deal gets finalized remains to be seen. However, esports as a whole is slowly softening its stance against gambling-themed partnerships, and the top prediction market platforms continue an earnest push toward expansion and an elite data infrastructure that will accelerate growth and cement legitimacy.