"Last month, the online prediction market Kalshi filed some very dry but potentially very lucrative paperwork with the federal Commodity Futures Trading Commission (CFTC). The company, which allows users to predict real-world event outcomes that range from election winners to the annual number of U.S. cases of whooping cough, announced its intent to offer markets for football point spreads, totals, and individual touchdown scorers, too."
"Technically, Kalshi doesn't take bets or set odds itself, and the company carefully avoids referring to its business as "gambling." Instead, it enables customers to trade "event contracts" priced between 1 and 99 cents, where the prices roughly correspond to the percentage chance that the market believes a given outcome will occur. Kalshi, which allows trading both on its own site and also through its partnership with Robinhood, makes its money on transaction fees."
"For example, if Kalshi offers a contract for whether Justin Jefferson catches a touchdown on Monday Night Football, and Jefferson promptly reels in a 77-yard bomb and then hits the Griddy, those who bought shares in the "yes" position would get to cash in. Those who banked on Vikings quarterback J.J. McCarthy struggling to throw downfield in his regular-season debut would get nothing."
Kalshi filed paperwork with the CFTC to offer markets for football point spreads, totals, and individual touchdown scorers. Kalshi enables customers to trade event contracts priced between 1 and 99 cents, with prices that roughly correspond to the market-implied probability of an outcome. Kalshi does not set odds or take bets in a traditional sense and avoids labeling its business as gambling. Kalshi makes revenue from transaction fees and allows trading on its own site and through a partnership with Robinhood. Winning contract holders are paid $1 per share when markets resolve.
Read at Fast Company
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