Prediction market companies are expanding their California presence through sports partnerships, advertising and lobbying, despite traditional sports betting remaining prohibited in the state.
Kalshi has agreements with the Los Angeles Dodgers, San Diego Padres and San Francisco Giants, while DraftKings has launched California-specific advertising for its Predictions product. The Coalition for Prediction Markets also spent $50,000 on state lobbying between April and July.
California’s size and lack of legalized sports betting have made it an important market for prediction-market operators seeking customers in states where conventional sportsbooks remain unavailable.
Kalshi Strengthens Baseball Presence
Kalshi announced exclusive, multi-year partnerships with five MLB teams, including three California clubs. The agreements cover stadium signage, digital promotion, radio advertising and fan activations.
Its Dodgers deal includes naming rights to the Gold Glove Bar at Dodger Stadium, along with LED signage and activations in Centerfield Plaza. Kalshi said baseball trading volume has increased 36-fold year over year.
“The idea is that fans are already engaging with their favorite teams on Kalshi, so it only makes sense to extend that fandom to some of the most beloved baseball teams in America,” Kalshi Head of Sports Partnerships Adam Barrick said.
Polymarket has partnered with the New York Yankees and MLB, while Novig has signed an agreement with the Mets. Reports have also indicated that Kalshi is seeking a separate deal with MLB.
DraftKings Markets Predictions
DraftKings has launched advertising in California, Georgia, Texas and Florida, where its Sportsbook is unavailable. The campaign promotes Predictions with a “spend $5, get $200 in bonuses” offer, and advertising has appeared on California highways.
Predictions has been available in California since December 2025. CEO Jason Robins said customers in states without legal online sports betting resemble DraftKings Sportsbook customers.
“In states that don’t [have legal sports betting], like California and Texas, we are seeing a very similar customer profile to who we get on OSB in the states that we have OSB,” Robins said.
He also expects an awareness period for California consumers.
DraftKings expects “millions and millions of customers” to engage with Predictions this fall.
Lobbying Accompanies Market Expansion
The Coalition for Prediction Markets spent $50,000 on California lobbying through Redwood Public Affairs, which contacted the offices of Gov. Gavin Newsom and Attorney General Rob Bonta.
The coalition represents companies including Coinbase, Crypto.com, Kalshi, Robinhood and Underdog. Kalshi separately spent about $60,000 lobbying in California and contributed more than $100,000 to state election committees.
The coalition also spent $100,000 on federal lobbying during the second quarter, while Kalshi spent more than $1.7 million federally during the first half of 2026.
Operators argue that their contracts are financial products overseen by the Commodity Futures Trading Commission. State lawmakers and tribal gaming groups dispute that position, saying sports contracts constitute gambling.
California has yet to pursue the direct enforcement actions seen in states including Arizona and Nevada, although Bonta has joined multistate briefs supporting state authority in prediction-market disputes.
Source:
“Prediction Markets Target California With MLB Deals, Ads and Lobbying”, gamblinginsider.com, August 26, 2026
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