Under pressure from federal and state lawmakers, Kalshi promised to ratchet up scrutiny of athletes and politicians who trade on their own contests. “All markets have bad actors,” a lawyer for the prediction market operator wrote. “We believe that staying ahead of bad actors means developing new technology and policies.”
Kalshi and rival Polymarket are racing to police themselves before regulators do it for them. Washington has preferred a hands-off approach, but states — which rely on casino revenue and see gambling enforcement as their jurisdiction — are taking action.
“Too many young people in Utah are getting exposed to addictive sports betting and casino-style gaming contracts that belong under state control,” Sen. John Curtis, R-Utah, said as part of a bipartisan push to ban prediction markets from providing contracts related to sporting events. (He has backup from his governor.)
Prescreening politicians and celebrities might be doable — financial firms have long flagged “politically exposed persons” for extra scrutiny — but family members, staffers, and translators for star athletes will be harder.