The absence of legal sports betting in California has opened up significant opportunities for prediction market operators to attract customers.
As part of this initiative, Kalshi has formed partnerships with three Major League Baseball (MLB) teams in the state, while DraftKings has launched a focused advertising campaign for its Predictions product.
Platforms like Kalshi and DraftKings Predictions are already offering contracts for sports events in California, despite traditional sports betting being prohibited. Industry executives and analysts are increasingly recognizing California, along with other states that do not permit betting, such as Texas, as critical markets for growth.
Recent developments indicate a surge in marketing efforts targeting the largest untapped sportsbook market in the U.S., alongside heightened lobbying from the prediction market sector.
Kalshi has secured exclusive, multi-year brand partnerships with five MLB teams, including the Atlanta Braves, Boston Red Sox, Los Angeles Dodgers, San Diego Padres, and San Francisco Giants, with three of these teams located in California.
The agreements involve various promotional activities, including signage at stadiums, social media promotions, radio ads, and fan engagement initiatives. Notably, the deal with the Dodgers grants Kalshi naming rights to the Gold Glove Bar at Dodger Stadium, along with branded LED signage and activations in Centerfield Plaza.
Kalshi reported a staggering 36-fold increase in baseball-related trading volume on its platform compared to the previous year. Adam Barrick, Head of Sports Partnerships at Kalshi, stated, “Fans are already interacting with their favorite teams on Kalshi, so it makes sense to deepen that connection with some of America's most cherished baseball teams.”
This expansion significantly enhances Kalshi's visibility within professional baseball as the company seeks to establish its brand ahead of the postseason. The Dodgers are currently favored to win their third consecutive World Series title after victories in 2024 and 2025.
In addition to Kalshi's efforts, DraftKings is ramping up its marketing activities in California. The company has initiated state-specific advertisements in California, Georgia, Texas, and Florida—regions where DraftKings Sportsbook is not yet available. The ads promote a “spend $5, get $200 in bonuses” offer, similar to those seen in its sportsbook promotions.
Recent state-specific ads from DraftKings have appeared across California, Florida, Georgia, and Texas, enticing new customers with a $200 bonus after a $5 initial trade. The fine print clarifies that “Event Contract Trading is offered by DraftKings Predictions, a CFTC-registered entity.” Additionally, DraftKings has been spotted advertising Predictions on California highways, as shared on social media.