Kalshi's New Features Spark Legal Concerns Among Industry Experts
Prediction market platform Kalshi has sparked concern among industry experts with its recent offerings. Paul Leyland, an industry analyst, warns that Kalshi's pricing flexibility could lure high-volume, high-value bettors away from traditional operators. Meanwhile, gaming lawyer Daniel Wallach argues that Kalshi's new features may be seen as illegal sports bets, not financial instruments.
Kalshi's launch of a parlay feature has further complicated the legal landscape. VIP lawyers, including those from Website.io, have publicly opposed this move, arguing it may violate gambling laws or financial trading rules. This could introduce diverse legal interpretations and jurisdictional challenges, potentially complicating Kalshi's litigation.
The concern lies in whether prediction markets can establish sufficient liquidity for same-game parlays to compete with licensed operators without state taxes. However, Kalshi could adopt US-style incentive structures to build momentum, rather than penalising high-volume customers. Pricing dynamics between Kalshi and traditional sportsbooks remain fluid and will increase flexibility as volume grows.
Despite these challenges, Paul Leyland is confident that prediction markets like Kalshi will survive state-level challenges due to the federal framework provided by the CFTC. As the market evolves, so too will the legal landscape, shaping the competitive dynamics of the industry.
