Kalshi Makes Big Money on Giannis Trade Market
Athletes agreeing to partner with sportsbooks has long been subject to criticism. The fear is that players, including stars, will have financial incentives to manipulate betting markets.
We saw that fear come to life with Giannis’s investment in Kalshi.
According to Business Insider, customers spent $28 million on contracts involving Giannis and his future. With the NBA media convinced Giannis would be traded, the majority of the money was placed on him moving to other teams.
The timing of Giannis's announcement didn’t help ease fears among some fans. He shared the news on social media shortly after it was announced he would not be traded. While that doesn’t mean anything improper happened, it did raise questions about when talks about his investment began.
Betting Schemes Continue to Surface
The fears over the new relationship with Giannis and Kalshi are not unfounded.
Increasingly complex betting schemes have hammered US sports. While the industry has been detecting more of them, it can take years before anything can be done.
The MLB’s recent scandal involving All-Star closer Emmanuel Clase showed that the star manipulated pitches in 48 games over two years. That is a lot of games and wagers affected before schemes are being uncovered. While getting justice is nice, the time it's taking isn’t helping to shake fears over the integrity of their favorite sports.
Giannis is one of the highest-paid athletes in the world, but Clase was also earning a great deal of money. That didn’t stop him from looking for an easy way to make more, showing fans that even stars are susceptible.
Public Reaction a Bad Sign for Prediction Industry
While major sports media outlets largely glossed over the story, several others were critical of Giannis. They have used this new deal to point back to other rumors about Giannis not being the “nice guy” many believe him to be. Between traded demands, firing coaches, and input on roster moves, more fans are seeing him as being the same as any other superstar.
Kalshi was hopeful Giannis would help soften their fiery brand, but it appears the opposite may be happening. If so much of the public believes Kalshi can corrupt a player like Giannis, it's a terrifying sign of how they perceive the prediction industry.
