UFC Secures Prediction Market Deals; Dana White Asks President to Shield Gambling Industry

(AsiaGameHub) –   The UFC is forging more sponsorship agreements with prediction markets, while Dana White claims President Donald Trump is failing traditional sports betting.

Coinciding with Kalshi’s announcement of a deal with Nate Diaz, White dispatched a letter to Trump pressing the President to reverse tax modifications affecting gamblers.

Kalshi stated its arrangement with Diaz covers sponsorship of his fight shorts, billboards, and a joint social media campaign. Diaz is slated to display Kalshi branding during his comeback fight against Mike Perry this weekend.

Kalshi Deal Follows UFC-Polymarket Collaboration

This Kalshi-Diaz partnership comes after the UFC declared last November that competing platform Polymarket had become its “Official and Exclusive Prediction Market Partner.”

“Kalshi stepped up and showed love and support for me for this fight and my brand overall,” Diaz commented. “It’s good to be in business with them.”

“Nate Diaz ranks among the most genuine and fearless competitors in sports,” stated Valeria Vouterakou, counsel at Kalshi. “He is precisely the type of representative we want for our brand.”

Prediction markets are securing a growing number of partnerships with sports leagues, teams, and athletes. Beyond the UFC, these firms have allied with MLS, NHL, FIFA, MLB, and, most recently, LIV Golf.

UFC Relies on Betting, Says White

In his letter to Trump, White asserted that betting is vital to the UFC’s survival, notwithstanding several prominent betting controversies.

White is urging the President to repeal the gambling tax adjustment enacted as part of Trump’s One Big Beautiful Bill Act last year. The new regulations permit bettors to offset just 90% of their losses against their winnings before being taxed on the balance.

While some legislators have pushed to overturn the rule, Trump has hesitated to endorse a rollback. White argued the new policy endangers Trump’s “no tax on tips” stance because “gamblers will probably be less generous, if they wager at all.”

He further stated the change “renders betting in the United States illogical, as you might owe taxes despite losing or face a tax bill higher than your annual winnings.”

“The UFC backs a robust, legal sports betting market to boost fan engagement, broadcast value, and sponsorships,” White wrote in the letter, which was noted by prediction markets analyst Dustin Gouker.

“Discouraging legal betting damages the ecosystem we have built over years alongside state regulators and licensed operators. It also weakens the transparency and integrity safeguards that legal betting offers professional sports,” White said.

Betting Scandals & Rule Change Impact UFC

The UFC has recently experienced a drop in betting volume, potentially due to the tax change or recent betting scandals.

“We’ve observed a recent decline in the handle and betting activity for the UFC,” noted Borgata Race & Sportsbook Director Thomas Gable. “It’s probably a mix of factors, with integrity concerns being one of them.”

Worries about unusual betting patterns re-emerged around the Sean Brady vs. Joaquin Buckley bout at UFC 328 on Saturday. Pre-fight odds shifted significantly to establish Buckley as the favorite, even though he was the underdog beforehand.

However, unlike recent matches featuring Isaac Dulgarian and Michael Johnson, the Brady fight proceeded as scheduled. The heavy betting on Buckley was misleading, as he lost decisively.

Tax Change Could Strengthen Prediction Markets

Although detractors of prediction markets contend they heighten risks of match-fixing and insider trading, the UFC seems untroubled, as it and fighters like Diaz partner with these operators.

The tax hike does not affect profits from prediction markets, since they are not formally classified as gambling.

White worries the tax amendment will deter bettors from wagering on the UFC or drive them toward unregulated sites. It may also push gamblers toward prediction markets.

Under current rules, if you gained $5,000 on a prediction market and lost $5,000, your tax liability would be $0 because you can net the amounts as capital losses. Performing the same activity at a sportsbook would leave you taxed on $500 (the 10% of losses now non-deductible).

A recent survey indicates that bettors still favor sportsbooks, citing DraftKings‘ overall wagering experience as making it the top platform. This preference may shift, however, as Kalshi increases its sports advertising through sponsorships like the one with Diaz.