Key points:
- Kashi became the first FTC-regulated political betting prediction site after winning a long legal battle to accept online bets
- On the Presidential election alone, Kashi reported that it has received $130m in bets as of October 31
The Washington State Gambling Commission (WSGC) has put out a warning to residents of the state that political betting is still seen as illegal in the eyes of the Commission, despite a new platform claiming to be fully regulated and legal.
Kalshi became the first Federal Trade Commission (FTC)-regulated political betting prediction site after winning a long legal battle to begin accepting online bets. The platform has already been reported to see $130m in bets, or “trades,” as of October 31 on the upcoming Presidential election alone.
According to the operator, Kalshi describes itself as a “prediction market,” operating in similar ways to that of Wall Street’s commodity market. CEO Tarek Mansour told local media that participants buy or sell contracts based on their confidence in a particular outcome, which is said to offer an alternative to traditional polling data.
Those who have been in support of Kalshi state that the operator’s data is able to provide real-time insights into public sentiment, whereas critics worry more about the potential risks this data could serve towards election integrity.
Kalshi is currently only allowed to operate within the US and accept money from strictly US participants, something Mansour says is no issue for the operator, telling local media that Kalshi doesn’t “allow anyone outside the country to participate.”
Good to know: Caesars announced that the company expanded its mobile sportsbook offering to the state of Washington with the launch of the Muckleshoot app on September 19
The trading platform is open to everyday users as well as large financial players, with some bets reaching upwards of $100m on election results and the maximum bet allowed without vetting is $7m.
The WSGC Director of Communications, Troy Kirby, stated that the Commission is more likely to penalize residents of the state rather than operators such as Kalshi. Losing a bet would not exempt residents either, as the “intent to gain something” still constitutes a violation.
The only betting currently allowed in Washington, as described by Kirby, can take place at Tribal casinos or through casino apps in close proximity to the properties. Speaking to local media, Kirkby stated that “no other online gambling, in any form that offers a consideration, is allowed.”
From Kirby’s point of view, Kalshi’s platform should still be seen as betting even if the operator functions more like a commodity market where buyers and sellers trade contracts based on future predictions.
