Cardi B's Super Bowl cameo ignites a prediction market dispute

3 days ago 10

Cardi B's quality during Bad Bunny's Super Bowl halftime show has stirred statement among prediction marketplace users, raising questions astir whether she really "performed."

Prediction markets users placed divergent bets connected whether the rapper would execute astatine the halftime show, which the NFL says drew astir 128 cardinal viewers.

When Cardi B took the signifier connected Sunday, the Grammy victor danced alongside celebrities including Karol G, Young Miko, Jessica Alba and Pedro Pascal connected a pinkish structure set. But it was unclear if the creator was singing, creating a murky concern for the nation's astir salient prediction markets.

Polymarket is scheduled to contented a last determination connected Wednesday, portion Kalshi is facing a backlash aft choosing not to state a winner, citing ambiguity successful whether Cardi B sang during her halftime appearance.

Kalshi alternatively settled the marketplace astatine the past traded terms earlier it was paused — paying 74 cents per declaration to "No" holders and 26 cents to "Yes" holders — efficaciously issuing partial payouts.

That determination prompted 1 Kalshi idiosyncratic to record a ailment with the Commodity Futures Trading Commission, the autarkic U.S. bureau that regulates prediction markets.

Millions wagered connected the halftime show

Prediction markets let users to wager connected the result of aboriginal events, typically by responding to "yes" oregon "no" questions — called lawsuit contracts — and putting down a buy-in amount.

Leading up to the Super Bowl, Kalshi and Polymarket hosted lawsuit contracts revolving astir whether Cardi B, among different artists, would perform, which racked up $47.3 cardinal and $10 cardinal successful commercialized volume, respectively.

Some Polymarket users hashed retired the statement successful the comments conception of the lawsuit contract, with immoderate claiming they were scammed.

"There's nary mode that you would number a cameo arsenic a performance," 1 idiosyncratic wrote. Another argued that a "performance" does not exclusively mean singing.

Polymarket did not instantly respond to a petition for comment.

Kalshi besides faced a backlash from immoderate users implicit the halftime show. In the ailment with the CFTC, 1 idiosyncratic — who purchased a "yes" declaration — said that arsenic a effect of Kalshi's determination to settee the marketplace terms astatine the mid-trading value, they received $1,300 alternatively of $5,000. The idiosyncratic is seeking $3,700 successful reparations.

In response, 1 idiosyncratic filed a ailment with the Commodity Futures Trading Commission (CFTC), archetypal reported by the Event Horizon newsletter and posted by Front Office Sports. The user, who purchased a "yes" contract, claims that arsenic a effect of Kalshi's determination to settee the marketplace terms astatine the mid-trading value, they received $1,300 alternatively of $5,000. The idiosyncratic is seeking $3,700 successful compensation.

CFTC did not instantly respond to a petition for comment.

"The rules were clear. Under the afloat rules, singing and dancing counted arsenic a performance, but conscionable dancing successful the inheritance did not," a Kalshi spokesperson said successful an email to CBS News. "In the as-broadcast performance, Cardi B was dancing and mouthing words to the song, but it was unclear if she was 'singing'."

On the time of the Super Bowl, Kalshi reported a regular grounds precocious of much than $1 cardinal successful trading crossed its site, up 2,700% from past year.

Wagering connected sports events has faced immoderate pushback from states including Connecticut, which is arguing that platforms offering "sports events contracts" are illegal.

Some regulators, however, look to beryllium shifting their stances. In precocious January, CFTC Chair Michael Selig directed the bureau to retreat a 2024 regularisation proposal that sought to prohibit governmental and sports-related contracts. Selig said the advisory "contributed to uncertainty successful our markets."

Edited by Aimee Picchi

The Associated Press contributed to this report.

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