Celebrities and Controversies: The Drama Unfolding in Prediction Markets

Sydney Sweeney and LeBron James have recently made headlines with their involvement in the prediction market industry. Sydney Sweeney starred in a viral commercial for Novig, a sports-only prediction market, and reportedly received a share of the company in exchange. The ad, which has neared 100,000 likes on X, sparked considerable backlash, including from female athletes.

LeBron James, meanwhile, appeared in an ad for Polymarket, alongside other celebrities including Derek Jeter and Craig Robinson. The ad has gained significant airtime on various media platforms, including the official MLB streaming app. James's partnership with Polymarket marks a shift from his previous collaboration with DraftKings, moving from the sports-gambling business to the prediction-market side.

As the NFL season approaches, prediction markets are ramping up their ad spend to capture business. Sports contracts remain the most popular aspect, accounting for an estimated 80% of trading volume. The Dallas Cowboys vs. New York Giants game on Sunday Night Football generated over $112 million in trading volume on Kalshi, the top U.S.-facing prediction market. Parlay volume has also pushed prediction-market numbers to record heights, accounting for about 60% of trading and more than $5.6 billion in volume during the NFL season.