Prediction market Kalshi reached $1bn in trading volume during Super Bowl

"Online prediction market Kalshi hit a daily record on Super Bowl Sunday, surpassing $1bn in trading volume, the company announced on Tuesday. Kalshi's CEO, Tarek Mansour, called it an incredible weekend, telling CNBC that Kalshi was the biggest brand of the Super Bowl this year, without running a Super Bowl ad. Kalshi trading volume during the game was up 2,700% year over year. More than $100m were bets on Bad Bunny's opening song and $45m on which artists would perform with him on stage."

"Prediction markets like Kalshi allow users to trade on the outcomes of virtually anything, from sports and elections to what color someone will wear during a performance. Unlike casinos or traditional sportsbooks, users effectively bet (or trade) against others on the platform, instead of an established house, and the platforms earn revenue by charging trading fees. Kalshi and competitor Polymarket argue that this model distinguishes them from traditional casinos or sportsbooks."

"The reason people are flocking to prediction markets, especially Kalshi, is that our incentive as a company [is] we win when the customers win, we don't win when the customers lose, and that's a huge difference in the model, Mansour said on Tuesday. On Sunday, Kalshi told users that although some deposits were delayed because of the amount of traffic and deposits we're getting, their money is safe and on the way, it will just take longer to land."

Kalshi reached daily trading volume exceeding $1 billion on Super Bowl Sunday, driven by event-specific contracts and a 2,700% year-over-year surge during the game. Users placed more than $100 million on Bad Bunny's opening song and $45 million on which artists would perform with him. Prediction markets let users trade on outcomes across sports, elections, and entertainment, with participants trading against one another while platforms collect fees. Prediction markets fall under Commodity Futures Trading Commission oversight, whereas state agencies regulate traditional sports betting. High traffic caused some deposit delays but user funds remained secure.

Read at www.theguardian.com