Fox Corporation and Kalshi are in serious talks for a significant partnership, sources told Front Office Sports.
If the deal is finalized, it is expected to encompass Fox News and Fox Weather but not include Fox Sports programming, sources said. Spokespeople for Fox and Kalshi declined to comment.
Kalshi has had similar deals with other news organizations, including CNN and CNBC, while rival Polymarket has agreements with Dow Jones (the parent company of the Wall Street Journal), and Yahoo Finance. Representatives for Kalshi have previously told FOS that the majority of people who look at the platform do so to view odds, not to trade.
Kalshi offers a wide range of political markets, but the vast majority of trading on the platform focuses on sports. Fox Sports—which wouldn’t be included in this partnership—doesn’t currently have an official odds provider, but does offer promo codes to various online sportsbooks.
News of the advanced negotiations comes as Kalshi finds itself at the center of a battle between federal law and state sovereignty. Michael Selig, chairman of the Commodity Futures Trading Commission—the federal regulator that oversees prediction markets—has repeatedly declared the legality of exchanges like Kalshi and Polymarket, and recently issued guidance ahead of anticipated new rules that will govern the industry.
Meanwhile, Kalshi and other prediction-market platforms are involved in dozens of lawsuits in districts across the country as states seek to rein in what they consider to be illegal gambling. At least 10 states, including Maryland and Ohio, have issued cease-and-desist orders to companies like Kalshi, Polymarket, Robinhood, and Crypto.com. Some states, like Massachusetts and Nevada, have sued Kalshi.
On Tuesday, Arizona became the first state to hit a platform, Kalshi, with criminal charges over allegations it has been offering illegal wagering on sports and elections in the state.
State gaming regulators are not alone in viewing prediction-market platforms with a wary eye. The NFL, NBA, and PGA Tour are among pro sports leagues that have yet to embrace the industry. On the flip side, the NHL has official partnerships with both Kalshi and Polymarket, and MLS has a deal with Polymarket.
In the meantime, Kalshi and Polymarket have expanded significantly. Both raised billions of dollars last year, and are in talks with investors to raise additional capital at potential $20 billion valuations, sources have confirmed to FOS. The Wall Street Journal first reported that the two platforms are in discussions to raise more money.