Prediction Market Operators Build California Presence Via MLB Partnerships, Targeted Ads and Lobbying

Prediction market operators are capitalizing on California’s prohibition on legal sports betting. Kalshi has formed multi-year partnerships with three of the state’s MLB teams while DraftKings has deployed targeted advertising for its Predictions product. The sector is also directing lobbying resources at state officials, according to reporting by Gambling Insider.

MLB Partnerships and Advertising Campaigns

Kalshi announced exclusive, multi-year brand partnerships with five MLB teams: the Atlanta Braves, Boston Red Sox, Los Angeles Dodgers, San Diego Padres and San Francisco Giants. Three of those teams are based in California. The agreements include in-stadium signage, social and online promotion, radio advertising and fan activations. The Dodgers deal grants Kalshi naming rights to the Gold Glove Bar at Dodger Stadium.

“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.

Kalshi reported baseball-related trading volume on its platform has increased 36-fold year over year. DraftKings began running state-specific ads in California, Georgia, Texas and Florida promoting a spend $5, get $200 in bonuses offer. The company has also advertised Predictions on California highways. Jason Robins, CEO of DraftKings, said: “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.”

Lobbying Activity and Regulatory Context

The Coalition for Prediction Markets spent $50,000 in California between April and July. Kalshi has separately spent about $60,000 lobbying in the state and contributed more than $100,000 to state election committees. California Attorney General Rob Bonta and Gov. Gavin Newsom were among the offices lobbied. Bonta has joined multistate briefs supporting other states’ regulatory authority over prediction markets.

The activity occurs as prediction market operators face court battles in at least 20 states, including Arizona and Nevada, though California has not pursued comparable enforcement. Kalshi has spent more than $1.7 million on federal lobbying during the first half of 2026.

California as bellwether for non-sportsbook states

These coordinated commercial and political steps demonstrate how prediction market platforms are treating California’s population and sports fandom as a primary acquisition channel. Sustained execution through the upcoming football season could establish durable customer relationships before any shift in the state’s regulatory posture. Operators in similar jurisdictions will watch whether this model withstands closer scrutiny.

Reporting: Gambling Insider

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