Kalshi and S&P Dow Jones Partner for Index-based Events Contracts

Kalshi and S&P Dow Jones Indices (S&P DJI) announced on Oct. 26 that the prediction market will offer contracts settled against the official values of S&P's stock market benchmarks.

The deal runs both ways. S&P DJI, the company behind the S&P 500 and the Dow Jones Industrial Average, will also build new indexes from Kalshi's own market prices, covering economics, politics and sports.

That second half reaches bettors directly. The prices set by people trading Kalshi's sports and election contracts could feed a data product from a firm that says more money is invested in products built on its indexes than on any other provider's.

Kalshi Gets a Licensed Benchmark

Under the agreement, Kalshi becomes a preferred platform licensed for event contracts tied to S&P DJI indexes. An event contract pays out if a stated outcome happens, such as an index closing above a set level.

Kalshi co-founder and Chief Executive Tarek Mansour said the company's "aspiration is to be the next great financial exchange." Cathy Clay, who runs S&P DJI, called prediction markets "one of the fastest-growing categories in financial markets."

The fine print keeps some distance. S&P says Kalshi's contracts are "not sponsored, sold or endorsed by S&P DJI" and that it makes no representation about whether trading them is advisable.

The Deal Leaves Timing Open

The agreement follows Kalshi's Oct. 6 launch of a perpetual future on 500 large U.S. companies. A perpetual future is a contract with no expiry date. According to multiple industry reports, that product tracks a rival benchmark, the MerQube US Large Cap Index, rather than the S&P 500.

Kalshi is also fighting states that call its sports contracts illegal gambling, including a lawsuit from Utah's attorney general.

Neither company named a date for the first S&P-settled contracts or the first index built from Kalshi data. The first product listing is the next concrete step to watch.

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