The United States Tennis Association (USTA) has reached an exclusive prediction market partnership with Kalshi for the US Open, effective immediately, and restricts other prediction market platforms from advertising at event venues and during ESPN broadcasts.

The agreement was finalized in the last stages before the main event, following the conclusion of the US Open qualifying rounds. Two individuals familiar with the deal stated that the parties did not disclose the financial terms, duration, specific rights package for Kalshi, the scope of event data authorization, or whether it includes formal event outcome contracts.

The US Open is owned and operated by the USTA. Sources indicated that the association originally planned to consider partnerships in the prediction market category only after 2027, but the newly appointed CEO Craig Tiley pushed to advance the collaboration to this year's event.

The most exclusive terms of the agreement are the advertising restrictions: the USTA will prevent other prediction markets from promoting at US Open venues and on television, covering the event broadcaster ESPN. This arrangement not only provides venue brand exposure but also seeks to eliminate competition from similar platforms like Polymarket at core event traffic entrances.

As of the time of the announcement, Kalshi had not appeared on the official partner list for the US Open; a previous market analysis article on women's singles released by Kalshi still stated that it had no affiliation with the US Open or WTA. Both Kalshi and ESPN declined to comment, and the USTA did not respond immediately, indicating that the formal sponsorship level and the boundaries of tradable contracts still await public confirmation from all parties involved.

This collaboration comes amid increasing regulatory controversies surrounding prediction markets in the U.S. A federal appeals court recently ruled that the CFTC's current rules prohibit offering contracts related to sports betting in prediction markets and upheld the decision to lift related bans; thus, Kalshi's sports event contract business still faces parallel legal risks from state gaming regulations and federal commodity regulations.

In market mechanics, Kalshi exchanges exclusive advertising resources for low-cost customer acquisition and brand legitimacy among US Open audiences, while the event organizers gain new category sponsorship revenue; other prediction markets lose access to this high-value traffic entrance at venues and ESPN, relying instead on digital advertising, creator channels, or other sports rights collaborations to compete for users. If the platform can continue to provide trading contracts, the progress of the matches will drive user orders and liquidity concentration, allowing Kalshi to earn trading fees and new accounts; however, regulatory rulings, event integrity requirements, and whether contracts are allowed to go live will ultimately determine whether this exclusive right can translate into real trading volume.

Source: Public Information