NHL Forges Landmark Licensing Agreement with Polymarket

Executive Summary

The National Hockey League (NHL) has entered a multiyear licensing agreement with decentralized prediction market platform Polymarket, as reported by the Wall Street Journal, marking a significant step for Web3 platforms in mainstream sports.

The Event in Detail

The National Hockey League (NHL) announced multiyear licensing agreements with prediction market platforms Polymarket and Kalshi on October 22, 2025. This landmark decision positions the NHL as the first major U.S. professional sports league to permit the use of its trademarks by prediction markets. Under the terms of the agreement, Polymarket will be authorized to use the NHL's logo, specific terms such as "NHL" and "Stanley Cup," and the names of individual teams. This partnership is designed to bolster Polymarket's efforts in competing with established traditional sportsbook operators like DraftKings and FanDuel, integrating event contracts that function similarly to traditional sports bets.

Financial Mechanics and Business Strategy

Polymarket, founded in 2020 by Shayne Coplan, is a decentralized prediction market platform built on Polygon, enabling users to trade on outcomes across various real-world events using USDC. The platform has attracted significant investment from traditional finance, notably from Intercontinental Exchange (ICE), owner of the New York Stock Exchange. ICE committed up to $2 billion in cash to Polymarket, valuing the crypto-based prediction marketplace at approximately $8 billion, later revised to $9 billion. This investment was strategic, with ICE intending to distribute Polymarket's event-driven data and partner on tokenization initiatives.

Polymarket CEO Shayne Coplan characterized the ICE partnership as a "major step in bringing prediction markets into the financial mainstream," a sentiment echoed by ICE CEO Jeffrey Sprecher, who noted the blend of ICE's 1792 foundation with a "forward-thinking, revolutionary company pioneering change within the Decentralized Finance space."

Previously blocked by federal regulators from U.S.-based traders, Polymarket has strategized its reentry into the U.S. market by acquiring QCEX, a federally regulated derivatives exchange, for $112 million. This move established a legal framework for its U.S. operations. By partnering with the Commodity Futures Trading Commission (CFTC), Polymarket's contracts are now considered financial instruments rather than wagers, circumventing state-level gambling laws. This federal regulation enables Polymarket to operate nationally across all 50 states without navigating varied state licensing requirements. The company has initiated a national advertising campaign through Meta, targeting all 50 states and positioning itself as an alternative to traditional sportsbooks by contrasting its odds with those of established betting sites.

Broader Market Implications

The NHL's partnership with Polymarket is expected to significantly increase visibility and potential user adoption for the platform and the broader decentralized prediction market sector. This collaboration could encourage more traditional sports and entertainment entities to explore partnerships with Web3 protocols, enhancing mainstream acceptance and perception of decentralized applications. The convergence of Web3 and sports ecosystems has been a growing trend, with strategic partnerships driving crypto adoption through tokenized fan engagement, brand value growth, and digital asset integration. The crypto betting market is projected to reach $230 billion by 2025, underscoring the substantial growth potential within this sector.

Furthermore, Polymarket's strategy includes a partnership with X (formerly Twitter), announced in June 2025, to integrate its blockchain-based prediction markets directly into X's interface. This collaboration aims to boost user acquisition, broaden the adoption of decentralized prediction markets, and leverage X's user base and xAI's Grok AI. The initiative is also anticipated to drive crypto adoption by introducing USD Coin (USDC) and the Polygon blockchain to X's audience, reinforcing Polygon's position as a leading layer-2 solution with an expected increase in USDC transaction volume.