Business
NHL strikes first-ever deal with prediction markets Kalshi and Polymarket
The National Hockey League said Wednesday it’s reached a multi-year licensing agreement with prediction markets Kalshi and Polymarket. More sports leagues may be coming soon.
Tarek Mansour, Kalsh’si co-founder and CEO, told CNBC’s “Squawk Box” the deal marked a “seminal moment” for prediction markets and the company.
“A league like the NHL partnering with us is a strong sign that prediction markets are here to stay,” Mansour said.
As part of the NHL deal, Kalshi and Polymarket will gain access to the league’s proprietary data and rights to use NHL marks and logos. In return, Mansour said, the hockey league will get a suite of customer protections. The NHL said both companies will receive brand exposure during broadcasts.
Mansour said the NHL deal could be replicated across other leagues: “Be on the lookout for more announcements soon,” he told CNBC.
Representatives for the NBA and NFL did not immediately respond to requests for comment. MLB declined to comment.
In August, the NFL expressed its concern about prediction markets, which allow customers to trade on the outcomes of events across entertainment and culture like election results or the length of the ongoing government shutdown.
Kalshi and other event trading platforms are regulated by the Commodity Futures Trading Commission. Yet many states, regulators and tribes are pushing back on prediction markets, arguing they amount to unregulated gambling. Multiple state and federal lawsuits are in progress over the alleged risks.
The American Gaming Association said in a statement Wednesday that the NHL deal “sends a troubling message.”
“The platforms in question fail to comply with essential standards,” the AGA said. “Worse, they are currently offering sports wagers in all 50 states to anyone 18 years of age—some of which have not authorized any form of legal sports betting and those that have largely define 21 as the prevailing legal age for wagering.”
Keith Wachtel, president of NHL Business, told CNBC he feels comfortable with Kalshi and Polymarket from a regulatory and integrity standpoint, noting that sportsbooks like FanDuel and DraftKings have also struck partnerships with prediction platforms.
He said the league’s interest in prediction markets lies in the opportunity to reach new fans.
“What’s great about prediction markets is it goes beyond sport,” he said. “It gives opportunity to watch a different audience grow significantly.”
Mansour said criticism of the market is par for the course for a disruptor and that he feels confident in Kalshi’s regulatory setup. He said Kalshi has spent years working with the federal government to create a regulated prediction markets.
“When we think about the announcement today, the NHL deal is really about that. It’s essentially a validation of the fact that we have established the right set of customer protection and the right set of market integrity measures to protect our markets, but also the game,” he said.
NEW DELHI: India’s economic dashboard is getting a long-overdue makeover in early 2026. From GDP and retail inflation to industrial output, several major measures of economic activity will be updated to reflect how people live, earn and spend today. A new index to track the booming services sector — from logistics to digital platforms — will also make its debut, offering a sharper picture of what drives the country’s growth.First off the block will be the GDP data, with 2022-23 prices, which will be unveiled on Feb 27 when advance estimates are released. This means that the budget-making exercise, which depends on the first advance estimates released Jan 7, will use the existing series. In Feb, the ministry of statistics and programme implementation will put out the updated retail inflation data, with 2023-24 base, measuring price rise for Jan.
And, in April, the new index of industrial production with a 2022-23 base will be released. This will be followed by the services sector index, estimating the largest component in India’s economy for the first time. The index has been in the making for close to two decades and seen to be crucial, especially as the role of new sectors, such as the digital economy and logistics, increases in everyday life.The new data line-up is seen to be the biggest upgrade in recent years with the base year set to be changed after over a decade. Currently, official estimates are based on 2011-12 prices and the consumption basket has also seen a massive change in these years, with the share of food coming down and products such as smartphones becoming mass-used items, replacing feature phones.Besides, it seeks to tackle crucial gaps in the current data, where products such as food offered through the public distribution system, do not carry any expenditure share since there is no out of pocket spend by households. The ministry is currently undertaking a revision of the consumer price index (CPI) with the objective of updating item weights, revising the consumption basket and incorporating methodological improvements to strengthen the index.
A Southwest Airlines jet approaches Midway Airport on Dec. 15, 2023, in Chicago. (John J. Kim/Chicago Tribune/Tribune News Service via Getty Images)
John J. Kim | Chicago Tribune | Getty Images
Southwest Airlines on Wednesday posted a surprise profit for the third quarter and said it expects to generate record sales in the last three months of the year thanks to better travel demand and higher fares.
The carrier said it expects unit revenue to rise between 1% and 3% for the fourth quarter, with capacity up 6% over the same period last year.
“This guidance range assumes demand strength remains at current levels through the end of the quarter,” Southwest said.
Here’s how Southwest performed in the period ended September 30 compared with Wall Street expectations, according to consensus estimates from LSEG:
- Earnings per share: 11 cents adjusted vs. loss of 3 cents expected
- Revenue: $6.95 billion vs. $6.92 billion expected
In July, Southwest joined other airlines in cutting its 2025 profit forecast. The Dallas carrier said it expected full-year earnings before taxes of $600 million to $800 million, down from an earlier forecast of $1.7 billion. It reaffirmed that earnings outlook on Wednesday.
The carrier has been working to better compete with rivals and increase sales, abandoning longtime policies like open seating and two free checked bags for each traveler.
Southwest CFO Tom Doxey told CNBC in an interview that increased sales from selling seat assignments would show up in the first quarter, when the first flights without open seating begin.
Southwest’s third-quarter profit fell more than 19% year over year to $54 million from $67 million. On a per-share basis, Southwest’s earnings fell to 10 cents from 11 cents a year earlier.
Adjusting for one-time items, Southwest reported $58 million in earnings for the third-quarter, or 11 cents a share.
Revenue rose 1% to $6.95 billion from the year-earlier period.
Business
Western Alliance CEO says alleged loan fraud is ‘incredibly frustrating’ but isolated issue
Sopa Images | Lightrocket | Getty Images
Western Alliance, one of the regional banks at the center of concerns over loans made to non-bank financial players, said Wednesday it believes the loan that sparked last week’s selloff is an isolated case.
The bank reported third-quarter earnings Tuesday afternoon and noted it had set aside $30 million in reserves for possible losses on a $98 million loan made to the Cantor Group. Last week, Western Alliance disclosed that it had sued the borrowers behind the Cantor Group for alleged fraud related to the collateral for the loans.
“While incredibly frustrating, we believe this is a one-off issue in our note finance business and have adjusted our onboarding and ongoing portfolio monitoring practices,” Western Alliance CEO Kenneth Vecchione told analysts on Wednesday.
Shares of Western Alliance rose almost 2% in midday trading.
Regional banks are getting a reprieve this week after Western Alliance and Zions, which also had exposure to the alleged loan fraud, reported results that didn’t include any new loan meltdowns. Each of the banks posted rising hauls from net interest income on lower funding costs, while some of their metrics around credit quality actually improved from previous quarters.
The Cantor Group episode forced Western Alliance to review other loans in its note finance portfolio, Vecchione said Wednesday.
“Today we have reverified titles and liens for all notes greater than $10 million and have found no irregularities,” he said.
Analysts grilled Vecchione during the Wednesday call for more details around the bank’s loan collateral and lending to non-depository financial institutions, or NDFIs.
“What are you doing to validate your collateral and safeguard against future frauds?” Autonomous Research analyst Casey Haire asked. “It just seems like as long as you’re not afraid to go to jail, it seems easy to double pledge collateral.”
Besides the recent review, Western Alliance periodically checks collateral to make sure the bank is still in a position to collect if the loan sours, executives said. Much of the bank’s NDFI book is tied to residential mortgages, which Western Alliance considers low-risk, they added.
‘Can’t unsee’
Western Alliance is also exposed to another recent blowup, the bankruptcy of the auto parts maker First Brands.
But in this case, a loan facility made to a fund managed by a subsidiary of the investment bank Jefferies “remains current, and we continue to receive principal and interest payments as modeled,” said Vecchione.
While this week’s reassurances have calmed markets for now, the sharp selloff in regionals last week is leaving a lasting mark on the industry. Shares of both Western Alliance and Zions plunged on Thursday after the banks disclosed problems with the Cantor Group.
Investors are ready to hit “sell” on any signs that the losses aren’t isolated, and share gains for the group will be capped for the foreseeable future because of these worries, said Timur Braziler, who covers mid-cap banks for Wells Fargo. He cut his recommendation on Western Alliance to “sell” on September 29.
“You can’t unsee these events,” Braziler said in an interview. “The timer for any kind of sustainable outperformance within the regional group has gotten reset once again.”
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