Spanish Soccer Club Osasuna Denies Direct Kalshi Bet Amid Relegation Controversy

A Spanish professional football club, Club Atlético Osasuna, has refuted claims of directly placing a bet worth nearly $600,000 on the prediction markets platform Kalshi. The controversy arose after reports suggested the club had wagered against its own relegation from LaLiga, Spain's top professional soccer league, in the 2025-2026 season.

Osasuna stated it did not engage in any prediction markets or have a direct relationship with Kalshi or similar entities. Instead, the club confirmed it had taken out a €1.2 million relegation risk policy with Howden, an international insurance firm. Documents released by Osasuna reportedly confirmed this arrangement, with LaLiga having been informed.

A Kalshi spokesperson clarified the situation, explaining that clubs commonly purchase relegation insurance. In this instance, Osasuna bought insurance from Howden, and the broker then offloaded this risk, effectively reinsuring it, via Kalshi. The spokesperson noted that Kalshi was used for this purpose due to better pricing compared to traditional reinsurers.

On May 23, Osasuna played Getafe FC and lost 1-0. Despite the loss, the club avoided relegation as teams below them failed to accumulate enough points to overtake them. This outcome meant the insurance company was not obligated to pay the €1.2 million policy to Osasuna.

According to Karl Lockhart, a DePaul University law professor specializing in prediction markets, such insurance contracts are common among sports teams and players to safeguard against adverse events. The situation highlights the growing use of prediction markets and their potential role as a form of insurance, raising broader questions about financial hedging strategies in sports. (Source: Fortune)