Kalshi has launched a $1 billion perfect bracket contest for March Madness, marking a significant expansion into sports prediction markets. The contest, which began on March 19, 2026, aims to boost trading activity by offering a massive prize for a perfect bracket. This move comes as interest in sports-based contracts grows, with Kalshi's trading volumes surging, notably processing over $1 billion during the Super Bowl. The contest is backed by SIG Parametrics, part of Susquehanna International Group, adding institutional credibility. Despite the low probability of a perfect bracket, Kalshi offers additional incentives, including $1 million for the highest scoring bracket and another $1 million to charity, to maintain user engagement. Participation is limited to U.S. users, excluding New York and Florida due to regulatory constraints. Simultaneously, Polymarket has secured a partnership with Major League Baseball, becoming its exclusive prediction market partner. This agreement grants Polymarket access to official data feeds and licensing rights, further legitimizing prediction markets in professional sports. The collaboration with the Commodity Futures Trading Commission aims to monitor integrity risks, reflecting the growing influence and regulatory integration of prediction markets.