In 2014, he offered $1 billion to any Berkshire Hathaway (or subsidiary) employee who picked the winner of all 63 games correctly. Nobody won, and the company has since modified its payouts multiple times because a perfect bracket is harder than you might think. 

Taking teams’ stats, history, and general basketball knowledge into account, the NCAA estimates that the chances of perfection are 1 in 120.2 billion. The longest verified streak came from an Ohio man who correctly guessed 49 consecutive games in 2019. 

Kalshi admits that it knows “the odds aren’t in your favor.” In the unlikely chance of a payout, the winner would receive $100 million each year for 10 years, according to the contest rules. SIG Parametrics, a member of the Susquehanna International Group of Companies, is financially backing the contest.

If no one has the perfect bracket, the person with the highest score, based on the company’s point system, will receive $1 million. If there’s a tie, the prize will be split equally among the winners. 

All U.S. citizens over 18 years old were eligible to enter the contest before the competition’s first game on March 19. But New York or Florida residents are not eligible, and Kalshi did not immediately respond to Fortune’s comment on why people in those states were excluded. 

Berkshire’s long-standing tradition

Kalshi is mimicking a longtime Berkshire Hathaway tradition that drew about 65,000 of its nearly 400,000 employees in 2024, according to The Wall Street Journal. 

Since 2014, Buffett has offered his employees millions for their brackets. And even though he stepped down as CEO in December, the competition will continue this year, according to Front Office Sports. 

Over the years, the rules and prizes have changed as the long odds weighed on participants, while Buffett was eager to give away money.

After kicking off the yearly competition with a $1 billion prize for a perfect bracket, Buffett switched to a $1 million reward from 2015 to 2024 to anyone who perfectly guessed the Sweet 16. 

But no employees met the target. A $100,000 consolation prize was given to the bracket that stayed perfect the longest. Buffett is known to personally congratulate the winners. 

“I’m getting older,” Buffett told WSJ in 2025. “I want to give away a million dollars to somebody while I’m still around as chairman.”

Last year, Buffett’s wish came true after he changed the rules again to offer $1 million to anyone who correctly guessed at least 30 of 32 first-round games. A FlightSafety International employee (a pilot training company subsidiary of Berkshire Hathaway) won $1 million for correctly guessing 31 out of 32 first round games.