Spanish Soccer Club's Relegation Insurance Traded on Kalshi Prediction Market
A Spanish soccer team's insurance policy against relegation was transferred to the Kalshi prediction market after being placed with a broker. The club said it had no knowledge of the transfer and did not place a bet.
SemaforA Spanish soccer club purchased a $7 million insurance policy to protect against financial losses from relegation to a lower league. The policy was later transferred to the Kalshi prediction market platform. The club stated that its involvement ended after contracting the coverage with Howden, a broker that works with several LaLiga clubs.
It said the documentation contained no reference to Kalshi or any subsequent transfer of the risk.
"Club Atlético Osasuna contracted a relegation risk coverage with Howden," the club said in a statement. "The club's involvement in this matter was limited to the contracting of that coverage with Howden." The club added that it had no knowledge of arrangements made by third parties after the policy was issued. It also confirmed it did not place a bet or have a direct relationship with Kalshi.
Traditional insurance requires policyholders to have an insurable interest in the covered risk. This rule dates to 1745 British law aimed at preventing speculation on events like ship returns. Kalshi operates under CFTC regulations that do not include an equivalent requirement.
The platform allows trading on various outcomes, including sports-related events. A New York bar previously used Kalshi to hedge a promotion offering free drinks if the Knicks won an NBA playoff game.
