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Prediction markets under pressure to crack down on rogue bettors and stop insider trading
Kalshi said the candidates were fined and barred for 5 years after betting on their own races, as lawmakers push for tighter oversight.
- On Wednesday, Kalshi announced that three politicians running for federal office were fined and banned for five years after trading on their own elections, including one Senate candidate from Virginia and two from Texas and Minnesota.
- Prediction markets face scrutiny over rogue bettors like Gannon Ken Van Dyke, who netted $400,000 on trades before being turned down for other bets on the platform.
- Federal regulators maintain the Commodity Futures Trading Commission oversees prediction markets, not state gambling laws; Republican Gov. Spencer Cox of Utah wrote in February that he did not recall the CFTC having authority over the "derivative market" of LeBron James rebounds.
- Members of Congress are pushing for stricter oversight of event contracts involving war and death, with Democratic Sen. Adam Schiff arguing last month there is "no justification for gambling on lives" due to national security risks.
- Last month, Kalshi banned political candidates and athletes from trading on their own fields, though some observers said Thursday they are "not happy with any of that stuff" regarding the online bets.
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12 Articles
12 Articles
Prediction markets in hot seat over rogue bettors and insider trading
Incidents in which people apparently used exclusive knowledge to score handsome profits raise the question: Are prediction markets safe places for news junkies to bet on events – or dens of insider trading?
·United States
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Coverage Details
Total News Sources12
Leaning Left7Leaning Right1Center3Last UpdatedBias Distribution64% Left
Bias Distribution
- 64% of the sources lean Left
64% Left
L 64%
C 27%
Factuality
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