Kalshi partners with S&P Dow Jones Indices to create event contract indices

Kalshi announced a partnership with S&P Dow Jones Indices to create indices composed of Kalshi event contracts, the prediction market operator said.

Partnership scope

The partnership will seek to combine related Kalshi event contracts into single collective indicators, potentially covering political power, supply chain risks, AI’s impact on employment, sports outcomes and weather, according to the announcement. The partnership also enables Kalshi to list contracts on the S&P 500, Dow Jones Industrial Average, and other S&P DJI indices, with settlement tied directly to official index data.

The announcement does not specify a launch date or confirm particular investment products.

Legal challenges

The partnership comes as Kalshi faces legal challenges in the United States. New York is pursuing restitution, forfeiture of gains and financial penalties of a reported $36bn from Kalshi for allegedly offering prediction markets in breach of state gambling laws.

New Jersey has called on the US Supreme Court to review a federal appeals court ruling that favoured Kalshi, arguing that CFTC regulation does not exempt its sports event contracts from state gambling laws. New Jersey’s appeal called on submissions of the NFL, tribal organisation and the American Gaming Association (AGA). Kalshi’s response to the petition is due on 9 November.

International expansion

Individual gambling authorities in Europe and South America have blocked the launch of prediction market platforms, deemed to have no distinction with sports betting and gambling. Last month, Kalshi and rival Polymarket reportedly began lobbying financial regulators including the LSE and EuroNext to recognise prediction markets as a new utility for financial services.

Kalshi has a reported $40bn valuation.