Yankees risk fan fury by agreeing huge new sponsorship deal with crypto-based prediction market

Until just last season, the New York Yankees were too steeped in tradition to permit players to grow full beards. And even since the policy change, all player facial hair is still required to be 'well groomed.'

But the 123-year-old franchise has been far more forward thinking when it comes to gambling and related businesses by partnering with brands such as FanDuel, Bally Bet, Draft Kings, and MGM Resorts.

Now, with Major League Baseball and the crosstown Mets striking their own respective deals with prediction markets, the Bronx Bombers have followed suit by announcing a new multiyear agreement with industry leader, Polymarket.

'We are excited to begin a relationship with Polymarket — Major League Baseball's prediction market partner,' New York Yankees senior vice president of partnerships Michael Tusiani said in Thursday's press release. 'Through signage and fan experience opportunities, we look forward to elevating Polymarket's brand awareness both at Yankee Stadium and across our fan base.'

The divisive industry favored by Trump's White House operates similarly to online sportsbooks by offering futures contracts with prices and returns that fluctuate like betting odds (i.e. underdogs pay off better than favorites). 

Customers are given binary choices ('yes or no' or 'one or the other') on any number of positions, from gas prices to Trump's next turn in Iran, and of course, sports: Will the Yankees win the World Series this October? Etc.

Platforms like Kalshi and Polymarket made news during the 2024 US Presidential race by using customers' wagers to accurately forecast Donald Trump's electoral victory over Kamala Harris.

Crucially, these websites consider themselves to be 'exchanges' rather than 'sportsbooks' because they don't operate as the house, but rather as a conduit for two players. As a result, prediction markets face fewer taxes and are more widely available because they're not being prohibited, or even regulated, by individual states. 

Rather, prediction markets are under the federal jurisdiction of the Commodity Futures Trading Commission (CFTC), thereby giving Kalshi, Polymarket and similar websites access to massive markets like California and Texas, where sports gambling is currently illegal.

Prediction markets can also access customers below the age of 21, which is typically the minimum for sports gambling in approving states.

'New York's gambling laws protect children from underage betting and help combat gambling addiction,' state Attorney General Letitia James said in a statement. 'No matter what they call themselves, prediction markets like Kalshi are gambling platforms, plain and simple. By ignoring our laws, Kalshi is running an illegal operation and harming New Yorkers in the process.'

Kalshi has hit back at New York with its own statement.

'It´s sad to see this type of political theater from the leadership in our own state,' Elisabeth Diana, a spokesperson for New York-based Kalshi, said. 'States can´t just shut down a federally licensed exchange. This would also hurt New Yorkers, who would be driven offshore. We love New York, we love New Yorkers, and New Yorkers love our product.'

Fans at Yankee Stadium will soon see Polymarket LED branding in the South Bronx, where theren will also be premium hospitality and other opportunities related to the sponsorship deal, the exact details of which remain unreported.

There will also be some exclusive fan experiences from Polymarket. 

'We are proud to become a partner of one of the most iconic teams, not just in baseball, but in all of sports,' said Ari Borod, President of Sports Business Development at Polymarket.

'Yankees fans are among the most passionate in sports, and Yankee Stadium is a natural home for Polymarket, where the questions driving our markets come to life throughout the season.'