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- Kalshi and Game Point expand access to performance bonus hedging with sharply lower pricing.
- Exchange-based hedges price far below OTC levels as liquidity strengthens institutional demand.
- Kalshi trading volume jumps to $9.6B in January, marking a record month for prediction markets.
Kalshi is pushing further into the sports insurance sector through a new partnership with Game Point Capital. The company announced the move as CEO Tarek Mansour highlighted rising demand for structured protection in the sports industry. The collaboration aims to support hedging activity across a market valued at roughly $9 billion each year.
Game Point Capital issues hundreds of millions of dollars in sports insurance annually. The firm covers risks tied to sponsorship guarantees, game cancellations, player compensation models, and performance bonuses. These policies protect teams from large payouts linked to milestones such as playoff runs or championship wins.
One of Game Point’s most popular products is team and player performance bonus insurance. The coverage shields organizations from financial strain when bonuses are triggered by specific performance goals. These bonuses can include postseason appearances or statistical achievements by key players.
Kalshi Trades Show Major Pricing Edge Over OTC Markets
The broker entered two basketball-related performance hedges on Kalshi’s exchange last week. The hedges involved a bonus that a team would make to the postseason. The hedge was priced at 6% on Kalshi’s exchange, compared to an estimate of between 12% and 13% on the over-the-counter market.
The second hedge involved a trade to the second round. It traded at 2% on Kalshi’s exchange compared to an estimate of between 7% and 8% over-the-counter market.
In the past, insurers have used over-the-counter market deals with reinsurance providers such as Lloyd’s of London. The over-the-counter market is often opaque. The market may also charge higher prices due to a lack of competition.
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Mansour said exchange markets offer a different structure. He stated that open bidding enhances price discovery and lowers hedging costs. He also noted that broader participation supports more competitive execution for complex sports-related risks.
Record Trading Volumes Strengthen Kalshi’s Market Position
Kalshi’s liquidity has become a central part of its pitch. Mansour said the exchange could have processed a $22 million order during the recent Super Bowl without major price disruption. He pointed to that capacity as evidence of growing institutional interest.
Prediction platforms reported strong activity in early 2026. Kalshi and Polymarket recorded more than $17 billion in combined trading volume in January, marking a new monthly high.
Kalshi logged $9.6 billion in January. The figure was up 45% from December’s $6.6 billion. Polymarket recorded $7.7 billion, reflecting a 44% increase from the prior month.
Kalshi expects to handle additional hedging flows from Game Point in the coming months. The company sees rising demand as the sports insurance sector continues to expand.
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