Kentucky Derby Held as Betting Volume Rises; Joshua-Fury Fight Deal Completed

The Kentucky Derby is set to take place on Saturday in Louisville, with no event contracts available on major prediction platforms such as Kalshi and Polymarket. These platforms typically host contracts on sports outcomes, geopolitical events, and reality TV show moments, but horse racing remains absent.

Churchill Downs, which owns the Kentucky Derby and the racetrack where it is held, reported increased betting during Derby Week leading up to the race.

Bill Carstanjen, CEO of Churchill Downs, told CNBC that Bill Carstanjen, CEO of Churchill Downs, stated that track owners prefer traditional betting models and are unlikely to support prediction markets for horse racing. Betting on horse races dates back to the colonial era. The Supreme Court struck down a law in 2018 that prevented states other than Nevada from offering sports betting.

The Interstate Horseracing Act of 1978 requires explicit permission from the host race track, the horsemen's group, and the state racing commission to offer wagers on horses. Kalshi declined to comment on the absence of horseracing on its platform. Polymarket did not respond to a request for comment.

U.S. states have argued that companies like Kalshi and Polymarket need permission via a license to offer wagers on sports.

Prediction platforms have maintained they do not need licenses because their platforms offer investing and trading activity, not gambling, and because they are regulated by the CFTC. The CFTC has filed multiple lawsuits against states seeking to prevent them from taking action against prediction platforms.

Kentucky lawmakers have proposed legislation that would ban any of its gambling licensees from offering predictions.

5% tax on prediction market fees. Caesars said the amount of money wagered on the Kentucky Derby is pacing ahead of expectations. Kalshi and CNBC have a commercial relationship which includes a minority investment.