Super Bowl Gives Prediction Bets Record Trading Day; Charlotte Hornets' Shelly Cayette-Weston

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1:38If you're playing money ball with a huge bag of money, you're going to be really, really good. Bloomberg Business of Sports from Bloomberg Radio. This is the Bloomberg Business of Sports, where we explore the big money issues in the world of sports. I'm Michael Barg. And I'm Vanessa Perdomo. Damian Sassauer is out this week. Coming up on the show, we speak with the president of business operations for the Charlotte Hornets, Shelley Kayette Weston. Plus, we'll talk about the business of minor league baseball. That is straight ahead on the Bloomberg Business of Sports. But first, let's look at some of the top stories of the week, beginning, of course, with the Super Bowl.

2:16And that will do it. Seattle reigns above them all in the NFL. Now, the Seahawks, Super Bowl champions for the second time. Super Bowl Sunday is one of the busiest days of the year. I'm excited about talking about the Super Bowl for sports betting. But this year, prediction markets stole the show. To talk more about prediction market trading on the big game, we welcome Bloomberg News cross-asset reporter, Danitza Sikova. Danitza, welcome to the Bloomberg Business of Sports. Hi there, thanks for having me. In the immortal words of Vince Lombardi, everybody just bet, bet, bet, just bet. The gambling stocks, Super Bowl prediction bets, record$1.2 billion on trading day.

3:07Tell us more about that. Yeah, the numbers are staggering. Kaoshi itself said that they registered over$1 billion in trades related to the Super Bowl. This is, of course, over the season. But when it comes to the big game and the day, we got some interesting numbers from Bank of America. They look at the volume for both Polymarket and Kaoshi, and they say for Sunday got$1.2 billion. Really, really high number. Another number from Piper Sandler that we got is for the week, we got about$5 billion of wagers for both Polymarket and Kaoshi together. This is a 12 % increase from the previous week. Pretty, pretty strong estimates.

3:53Of course, we saw a lot of hype about prediction markets going into this. I think some of the projections were quite bullish. A lot of people were saying, oh, this will be like 10 times our busiest day, which is not the case. It was a very strong day. Obviously, a record for Cauchy was around 870 million. and this is 60 % higher than the busiest day, which obviously no one can argue this was a great day for them. But perhaps, you know, maybe some of them had even more bullish targets for that. But nevertheless, there were many different markets. It wasn't about the game. It was about the performance.

4:34It was about Cardi B. It was about Bad Bunny, Lady Gaga. So there was a lot of buzz that was beyond the traditional bets we were expecting. The interesting thing about this and these numbers are how they've skyrocketed, right? So last year was the first time that Calci was even allowed to or they operated on the Super Bowl, right? Yeah, for sure. And the last year's numbers pretty much look like peanuts now. It was just like less than 200 million. Now, obviously, numbers. I mean, there were some comparisons and people were like, oh, it's up to 3 ,000%. But I think it's really hard to compare because last year it was a small thing.

5:11It was at the beginning. People weren't really using their apps. A few interesting trends we're seeing. For example, combos, parlays. Those bets were really high on Super Bowl Day. I was looking at the Kaoshi number. About 160 million were in combos volume. About 18 % of the Sunday volume. So that's a pretty interesting trend to watch. Obviously, when it comes to app downloads, this is something we've been talking about. We know all the sports books, obviously, they have been around for quite some time. They have millions and millions of active users. But when it comes to acquiring new users, the competition has been heating up.

5:50And Kaushik has been doing very well in terms of app downloads. On the day, Bank of America is saying that Kaushik was number two in overall the app store. They're also giving a shout out to DraftKings, which was actually number five. But even going into the Super Bowl, the January downloads number for Kaoshi were pretty strong. We saw around 3 million, which is much, much higher than what we saw for DraftKings and Fangio. It was about 600 ,000. So definitely a lot of new users were going to those apps. It was a really strong season. And they were betting on sports. They were betting on entertainment.

6:29and they were placing those combo bets. It was really a combination of all the new buzzy things that prediction market does. Denizia, this is something new. When I'm used to betting on a game, I'm used to like Benny the Bookie or maybe I'll go to DraftKings and this, that, whatever. And now with Calci, this is like the prediction market. It's a totally different atmosphere. Yeah, it's different. There is no house. That's what they say. That, of course, is kind of a level. There are a lot of issues with that. Of course, prediction markets comes with market makers. And when you think of market makers, you have to think of all those big Wall Street names that are handling the plumbing for stocks and bonds.

7:13And, you know, we've been talking about Jane Street. We've been talking about Jump. We've been talking about, especially Sesquihana is a Kaoshi market maker. So there definitely is that activity. Of course, the whole concept in prediction market, there is a rivalry. There is a lot of criticism against sportsbooks that they're against the average player. While in prediction market, we get this peer-to-peer experience. I trade, a new trade on the other side, and it's a more fair game. Of course, we're yet to see, because there are many different analyses of how much the average user loses, and etc.

7:56But what we heard about the game, for example, is Jordan Bender from Citizens said the pricing on prediction market was a little bit better on the day of the game. Of course, it really depends. His analysis has shown pretty different numbers over time. But when it comes to the game itself, we definitely saw some better prices from prediction markets compared to bookies. I think the interesting thing to me is, is the boom just because people are like, this is new, I want to try it out? Or is it because of all the different things they offer? Like, because people are allowed to bet on the halftime show or trade on those things, too?

8:36I think it's a combination. I feel as though with sportsbook, obviously, you have kind of a more limited audience in the first place that obviously prediction markets is in more states. You have layer on that that prediction markets can be accessed by people under 21, which for sportsbooks is another thing. That's very odd to me. That's a really big audience. Yeah. So there's no age limit at all on prediction markets? No, I think in most of the time you have to be above 18, but between 18 and 21, that's a pretty big audience of people who are probably quite excited about sports. Right. So that's definitely helping.

9:16And that's another thing that people can bet on through Kalshi, and they did, trying to predict who are going to be the guests during the halftime performance for Bad Bunny. In case people didn't know, remember that wedding sequence that you saw? That was for real. Yeah. It was real. You know, you saw them smack, drool, give a good kiss, and then they separated, and here's Lady Gaga. And I'm sure, I wonder if people bet on that and many other performers. Yeah, I mean, that was where all the controversy was. There wasn't too much drama when it comes to the outcome of the game and the bets about it.

9:52But actually, the drama and prediction market was all about performance. For example, Cardi B caused a lot of drama because she was present. and there was a bet on who is going to perform on the Super Bowl. And she was lip syncing, she was dancing. So we saw two different outcomes. We had pretty much the same bet on Kaoshi, pretty much the same bet on Polymarket. What happened is that Kaoshi stepped in to resolve the contract and they pretty much resolved it at where it stands. So it was like 76 cents for yes and like 20 something for no. Polymarket took a totally different approach. Based on their rules, it counted that this was a yes and she did perform.

10:37But the way prediction market works is that after this is resolved, you can get disputed. So it's been disputed twice. So it was a complicated bet that no one probably imagined that such a thing will cause so much drama. but clearly it just shows you how hard our prediction markets is actually settling figuring out what is a yes and what is a no and how much additional layers of drama it causes after a bet is done. Right. As we were talking about that just then, it kind of almost changed my mind. I feel like maybe she didn't perform. I guess if we're talking about performance but I personally predicted that two people would perform and then five people would like kind of just show up so i feel like it is different but on that is the reason like we're looking at the the controversy there and and all of that like i'm i'm wondering because sports bets don't have that problem like like with prediction markets they have this this problem that they need to figure out is that why they're so much riskier How do you regulate that stuff, I guess, is what I'm really trying to figure out.

11:49How do you regulate what's on prediction markets and that's why sports betting, is it safer, would you say? No, that's a great point because sports betting is something that's been around for a while. If you'd like, there are more limited number of topics and things you'd bet. The whole concept of prediction market is like, oh, you're going to financialize everything. You're going to bet on everything. You're going to bet on music. You're going to bet on Jesus Christ's return. You can bet on pretty much everything. And that opens a whole Pandora box of like, oh, but how do you define what's a yes?

12:20How do you define what's a no? If it's something as abstract, how do you even define it? What happens if someone manipulates it? What if it's a mention market and I'm aware I'm the Coinbase CEO and I'm on an earnings call and I just start reading all the words on the mention markets? Which has happened. It has happened. It's a complete mess. Obviously, this is harder to do on Sportsbook. There is a whole insider trading issue with prediction markets that they have been fighting with. And it's kind of really hard to figure out, even if I'm like a performer or I oversee, like I randomly see Bad Bunny's rehearsal.

13:00And I know so much about performance and I put the money. But then it's not necessarily insider information. I just pass by. So am I an insider? What if I make money? It's just like pretty much the wild, wild west of just like all this foundation contracts. It's the thing I just can't understand about it. It's someone who's working in the stadium. Yeah, they don't know Bad Bunny. They didn't talk to him about his performance, but they saw all the rehearsals and they could have put up all the money. That's a very good point because, I mean, unless Lady Gaga was, you know, in a big barrel and she's just wheeled out there at the last minute.

13:34How can you not know? Somebody's going to be seeing that and then place a bet. I mean, you can't. There they are. I don't see how you can avoid it. And are those people insiders? Did they sign an NDA not to mention it? Are they allowed to bet in? I mean, how do you even deal with that? How do you prepare? Like, do you sign NDAs for every single bet on the market? Right. It's a gray, gray area. Our thanks to Bloomberg News cross-asset reporter, Danica Sakova. Up next, we turn to basketball and speak with the president of business operations for the NBA Charlotte Hornets. For Vanessa Perdomo, I'm Michael Barr.

14:12You are listening to the Bloomberg Business of Sports, Bloomberg Radio around the world.

14:20This is Bloomberg Business of Sports from Bloomberg Radio. This is the Bloomberg Business of Sports, where we explore the big money issues in the world of sports. I'm Michael Barr. And I'm Vanessa Perdomo. We turn now to the NBA now that we're at the unofficial halfway point in the season, the NBA All-Star break. All-Star weekend festivities are going on in LA, but we wanted to head to Charlotte to check in on a franchise that's got a young core and has been playing pretty well, the Charlotte Hornets. Yes, they have. Joining us now is Shelly Kayat-Weston. She is the president of business operations for Hornets Sports and Entertainment Group.

15:00the owners of the Charlotte Hornets and operators of the Spectrum Center. Shelley, welcome to the Bloomberg Business of Sports. Thank you for having me. You know, I have to bring this up because you have someone who's going to be in the all-star game and this young man, Khan Kanupel, a.k.a. Beast. Kanupel's already made a pair. He's got three! Oh, my goodness, the Khan man. This young man, he was first round, fourth overall in the 2025 draft. And I see why you picked this guy. Absolutely. Khan has been amazing. And he has been amazing on and off the court, I have to tell you. You know, his energy, his commitment, his dedication.

15:49A lot of people don't realize, you know, he actually played when he was at Summer League when we won the championship. That was, you know, this winning and this momentum started really in the summer, during Summer League. And he was playing with stitches in his head. He got a head butt and he was still playing because he's so committed, so dedicated. He's been a great energy and a great teammate. I think the team loves him. He's really all about team, which is so important to us. So it's been great having him. That's, you know, one of the things we definitely wanted to get into, winning the Summer League and, you know, having that momentum going into the season And having this strong rookie class and having Khan come in from your seat, you know, as president of business operations, how, you know, how much do you apply that strategy when you're looking at how to bring up this rookie class?

16:36And, you know, how does that apply for you? Yeah, look, I think it's been great in our organization. I think for any organization, like when you think about rookies, I think about in a business, the intern class, the intern class is so important. Some of your future leaders are in that intern class. They bring new ideas. They bring new energy. They challenge the norms. They make you better as an organization. And I think it's no different for our rookie class. You know, I give a lot of credit to Jeff Peterson and what he and his team has brought in. You know, we've got Khan and Ryan and Liam and Sion.

17:08And these guys bring such a strong collegiate background of team camaraderie and toughness and just a resilience that has really helped and added value to our young core. So they've really, really gelled well very early. I think it was great to hear, even in the offseason, right after the draft, our veterans were actually going to their practices, which is not the norm in the NBA, right? But it was really that early team camaraderie that started, and we certainly saw a glimpse of that in Summer League as we were on the journey to winning that championship. I like the energy that the Hornets have.

17:49At one point, you had a nine-game winning streak. Now, this is a really bad time for me to say that I'm a native Detroiter. I won't say what happened in the game. Y 'all look it up. That's it. That's all I'm going to say. What I am saying is you guys have the energy, and I think you guys have a shot to make the playoffs. Look, I love to hear that, and I will say, and it doesn't come out of my mouth, But I have heard that from a lot of people actually very early on. And I think what you're seeing, the nine-game win streak was such great momentum. But this really started over two years ago with new ownership with Rick Snall and Gabe Plotkin, having a very clear vision of being a premier NBA and entertainment franchise, of setting the foundation that we're going to bring in talent, and we're going to build a winning culture.

18:40And I think what you're seeing over that nine-game win streak, which included, by the way, a 20-point comeback against New Orleans. It was one of our longest win streaks in two decades with our organization. You're just seeing the outcome of a lot of work that Charles Lee, who's our head coach, he comes from winning organizations. He comes from having won two championships with the Celtics and the Bucs. He comes understanding what winning culture means. And you see him really infusing that into the team very early. and it's all behind the scenes. And again, it's great that now our fans can see that come to life and what came out to be, again, a nine-game win streak.

19:20And it's just momentum. We're looking to do this for the long term, not just a one-time momentum phase. And so we're really excited about what's to come in the future. Shelley, I want to talk a little bit more about that and about the new ownership. Like you said, they came in just a couple of years ago and then you came in right after that. Tell us about those early conversations that you had with them that you knew that this would be a good place for you and you believed in what they're trying to build? Absolutely. It's, you know, when my first conversations with Rick and Gabe, I felt their passion.

19:51And it's hard. I'm excited for everybody to get to know them. Actually, more people are going to get to know Rick because he's in the celebrity game and all-star. But they are passionate about basketball. They're passionate about basketball. They're passionate about winning. They both are obviously very successful. And I got to say this, they're just good human beings, but they're really driven by a winning culture. And so they've assembled a team with Jeff Peterson. He was their first hire. Jeff comes with, again, great background, great success in his career. My first conversation when I talked to even Jeff, I knew right away that he had the same alignment and commitment to excellence and just being the best and that we were going to be able to build this together.

20:32And then his first hire was Charles Lee, again, who came with a great background and just the energy. So we in the front office are aligned so well. And just we have one vision, which is, again, starts from Rick and Gabe, which is to be a premier franchise. And we are just committed to that. And we're committed to that for the long haul. When you're looking at the market a little bit more, can you tell us about that? Obviously, you were with the Cavs for a long time and being in the Cleveland market and now going into Charlotte. How do you, you know, what's your strategy around these, a bit of a smaller markets?

21:06But like you said, obviously, Charlotte and Carolina have this really deep basketball culture. So what's the strategy around those markets and expanding it? Yeah, no, it's a great question because, look, it's a growth market. And so what we know right now is we have legacy fans. Actually, Charlotte had the NBA attendance record for over nine straight years early when it started in its infancy back in the 80s when it was an expansion team. People love Dell Curry, Muggsy Bulgs. And by the way, they're still all on staff. We're actually recognizing and going to retire Dell's jersey March 19th. So we know we have a market that is connected to sport, but we also have a market that has 157 people daily moving here.

21:50So that means there's a lot of transplants that may have other connections to other teams. So for us, what we think from a strategic standpoint, it's literally about connecting. We want to create a sense of pride, create a product that people can be proud of. But also we have, I think, a market that understands civic engagement and civic commitment and how important that is. And so we just think we're also, by the way, North Carolina was ranked number one by CNBC as a state to do business two years in a row. So there's a lot of momentum on the business side here also. So we just think we're an exciting opportunity in a market of growth.

22:23and we're happy to play a part of that and be a part of that, the continued growth. I love Muggsy. I did. I remember when he came in the league. I'm like, yeah! You sure? I also want to note, though, before, Shelly, you had mentioned you came from a basketball background. And we have to let people know, you played Division I basketball, right? This wasn't a, oh, you know, I came from the sport a little bit. You know, you were really into it. And that just proves the whole, you know, theory that women, executive women in sports and across business actually played a high level of sports. It's a very high statistic on that, actually.

23:01Shelly, can you tell us more about how, like, being an athlete and being in the game and all of that, you know, influences your leadership style? Vanessa, you are so accurate with that. People ask all the time about my skill set and everything that I learned. I attribute all of it literally outside of my parents, my mom and dad, of course. The rest has really been basketball. I have learned so many skill sets in the business side from basketball, tenacity, toughness, how to deal with change, adversity. You know, I didn't have the best. I actually had a great high school career. I was challenged in my collegiate career.

23:34I played for a short period overseas near Prague, got cut, had to come back and figure out life. So I'm tested. But I also think it made me stronger. And so now I actually take opportunity, like coming here to this market. You know, the team has not been the most winningest team over its past few decades. And so I saw the opportunity, and that excites me. So I think basketball actually helped to create that in me, which is about drive. And by the way, team, it's all about team. So certainly understanding that, leading the organization, it's all about team. All of those skill sets came from basketball.

24:11And I have two young girls that are three and six, and one is just starting in basketball. And I can see her learning those skill sets very early. So we believe in the power of sport and the importance of sport, especially even women in sports. And lastly here, you know, Shelley, as we close up, obviously, you know, big, big new arenas are the shiny new thing, you know, across all sports, really. And it's really helping drive valuations. And now in the NBA, we see valuations skyrocketing. I mean, across all sports, but really in the NBA, we see two teams with over$10 billion valuations. Is that something that you think about at all when you're thinking about growth of revenue and all of those things that you have to think about?

24:48Are you thinking at all of, you know, growing your valuation? You know, we don't lead that. The great thing I love about Rick and Gabe is it's not about just money here. They're doing it because they want to win and have a winning team and culture on and off the court that the fans can be proud of. Absolutely. We want to be responsible in our business efforts. One example of that is Rick and Gabe invested in a brand new practice. So we have a Novant Health practice facility that we're building. It should be finished next spring right behind the Spectrum Center. And what that is is about our vision to have world-class facilities, right?

25:24So we want a place that we can actually retain top talent in the NBA and attract new talent and have a place that's top class. And you think about throughout the industry that has all the best, again, when you think about facilities and resources, we're also going to have orthopedic center in there that's open to the public. And our 300 employees will be housed in this facility because Rick and Gabe thought it was important to nurture collaboration. So when you talk about valuation, I think it's important to understand investing in the facility, it starts there, right? And if we do that right, we're going to get partners that align.

25:59We've had great long-term strategic partners. We just announced Judy Health, which is a great tech company that provides transparent benefits to customers and fans. We just added Honeywell, which is amazing in building automation. And they're going to help our players, fans, and employees become better. Even Truist, that's really a part of our practice facility in connection with our fans. These are long-term strategic partners. All of those investments and partnerships help long-term, right, as you think about how our organization is valued. And then we have great core partners that are already here, like Bank of America, that's headquartered right here in Charlotte and really committed to community.