Kalshi Blocks Athletes and Politicians From Trading on Related Markets

Kalshi has announced plans to preemptively block professional and collegiate athletes, coaches, officials, and political candidates from trading on markets related to their sports or campaigns.

“A pair of bipartisan senators on Wednesday said they won't drop their push to ban sports prediction market contracts, despite Kalshi and Polymarket announcing new insider trading restrictions on their platforms”

CNBC

This move comes as prediction market platforms face increasing scrutiny over insider trading concerns.

CNBC

The company already had existing rules banning those groups but now implementing stronger technical mechanisms.

According to Live Bitcoin News, the preemptive approach aims to give the platform "a stronger shot at catching bad actors early" by blocking access before any harm is done.

NBC New York reports that Kalshi said it would ban political candidates from trading on their own campaigns.

The Los Angeles Daily News notes that both companies have signed business deals with several sports teams and leagues to bolster credibility with sports fans.

Polymarket has also instituted its own set of bans and rules in response to growing concerns about insider trading and market manipulation.

The company rewrote its rules to clearly state that users cannot trade on contracts where they might possess confidential information or could influence the outcome of an event.

Las Vegas Sun

NBC New York reports that Polymarket's chief legal officer Neal Kumar stated, "These rule enhancements make our expectations abundantly clear for every participant across both platforms."

The Los Angeles Daily News highlights that Polymarket has faced intense criticism after users made substantial bets ahead of the war with Iran and military action in Venezuela.

Newsweek adds that the controversy cuts to the heart of whether prediction markets can self-regulate or whether federal intervention is necessary.

Two bipartisan senators, Adam Schiff (D-Calif.) and John Curtis (R-Utah), have introduced legislation that could severely curtail the prediction market industry's prospects.

“Kalshi will preemptively block athletes and politicians from trading on relevant markets, installing new tech barriers as prediction market insider trading scrutiny grows”

Live Bitcoin News

CNBC reports that the senators announced the "Prediction Markets are Gambling Act," which would give states rather than federal regulators control over sports betting.

Schiff told CNBC that the companies' efforts to police themselves are insufficient, stating, "I think it's enough...It's one thing to say, 'This is our policy.' It's another actually to put into place the steps to make sure it's not happening on those platforms."

Las Vegas Sun notes that Curtis has said the bill is about "keeping speculative financial products out of spaces where they don't belong."

Newsweek highlights that the bipartisan legislation signals growing skepticism of prediction markets across party lines.

The prediction market industry is facing mounting criticism from multiple angles, with lawmakers, economists, and even fellow politicians expressing concerns.

CNBC reports that economists from the Federal Reserve Bank of New York found that sports betting "can have dramatic implications for household financial stability."

Los Angeles Daily News

Newsweek mentions that New York Democratic Representative Alexandria Ocasio-Cortez called the new insider trading restrictions "insufficient and a political deflection."

Las Vegas Sun adds that Rep. Dina Titus, D-Nev., stated that "so-called prediction markets are exploiting regulatory gaps, undermining state gaming laws, and exposing consumers to unnecessary risk."

Live Bitcoin News notes that Kalshi criticized the legislation, claiming it would "just push this behavior offshore, where no regulation exists."