Prediction markets like Kalshi becoming relapse risk for banned gamblers, experts say

Prediction market platforms such as Kalshi are emerging as a relapse risk for people previously banned from traditional betting sites, according to experts.

One case highlighted involves a man who had been banned by betting sites and filed for bankruptcy before relapsing through Kalshi, illustrating what experts describe as a broader pattern.

Gaps in consumer protection

Experts say prediction market companies have become a go-to outlet for people struggling with gambling addiction, in part because the platforms operate outside the state-level consumer protections that apply to traditional gambling sites.

The companies involved have not publicly detailed how they address concerns about addiction risk or self-exclusion measures already used by regulated betting operators.