Genius Sports signed official-data, integrity, and marketing agreements with Polymarket on Aug. 4 and Kalshi on Aug. 5, putting one supplier underneath the settlement layer of both rival prediction platforms. The company’s second-quarter results, published a day later, already credit prediction markets with an incremental contribution to margin.
Key Takeaways
Genius Sports signed Polymarket on Aug. 4 and Kalshi on Aug. 5.Genius booked prediction-market revenue in Q2, before either deal was signed.Q2 revenue rose 65% to $195.5M; Genius still posted a $76.7M net loss.Kalshi will use the verified feeds as a single source of truth for settling sports event contracts, join Genius’s information-sharing processes, restrict certain market types, and take marketing services through Genius’s Legend-owned media properties – the review and comparison sites bettors land on when they search for a sportsbook or casino, which earn a fee each time a reader signs up with an operator. “As the prediction market ecosystem continues to expand at a rapid pace, the use of official data and integrity services is more important than ever,” said Adam Barrick, head of sports partnerships at Kalshi.
Chief executive Mark Locke said on Thursday that the two deals reflect a deliberate position: “We own the official data that the regulated ecosystem, sportsbooks, media, and now prediction markets depend on, and we own the audience layer on top of it.” He said demand is rising with prediction-market operators entering the sector. Genius told investors the Legend acquisition brings roughly 180 million owned users, and that sales and marketing costs rose $3 million against $77 million of revenue growth in the quarter.
Investors read the two announcements as a repricing. Genius shares rose 14.3% on Tuesday following the Polymarket news and added roughly 2% more on Wednesday after the Kalshi deal, closing at $8.33, up almost 25% on the week.
