"According to the document, the purpose "is to foster efficient risk management by and for entities that currently offer sportsbook services. To improve market efficiency and to promote pricing efficiencies, entities explicitly hedging their risk from offering sportsbook services may use Kalshi without "taker" fees in specific circumstances." The aim is to also increase volume on the central limit order book and thereby enhance pricing efficiency. The more volume on the central limit order book, the greater the pricing competition."
"Under the program terms, the intricacies of the introduction have been shared: "During the Program, solely for orders exceeding 300,000 total contracts traded for the hedging purpose described in the Program, Kalshi will rebate all "taker" fees (e.g., fees on non-resting orders) and fees derived from use of the RFQ system ("Rebates"), less any other reduction, rebates, or incentives earned in the relevant month, paid by Eligible Participants as exch"
Kalshi is implementing a Sportsbook Hedging Rebate Program effective on or after February 23 and will remain until February 1, 2027 or earlier if amended or terminated. The program rebates all "taker" fees and fees from use of the RFQ system for eligible sportsbook hedging orders that exceed 300,000 total contracts traded in a month, net of other reductions and incentives. The program aims to foster efficient risk management for sportsbook operators, increase volume on Kalshi's central limit order book, and improve pricing efficiency and competition by offering favorable hedging terms to entities laying off sportsbook exposure.
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