As first reported by The Event Horizon, prediction market platform Kalshi had partnered with IC360, a sports gaming integrity firm. Kalshi will also launch a consumer protection hub where traders can set monthly trading limits and self-exclude.
The new partnership and features follow prediction markets’ aggressive expansion into sports that began with Crypto.com’s Super Bowl contracts getting self-certified in December 2024. Kalshi followed with its own Super Bowl contracts shortly after Trump–and friendlier regulators–took office in January.
Across its expansions into different types of prediction markets, Kalshi has continued to prioritize regulatory compliance, a strategy that helped the company prevail in its battle to launch election markets.
Kalshi still sees value in regulatory compliance
Kalshi’s efforts to launch regulated election markets began well before it sued the Commodity Futures Trading Commission (CFTC) in November 2023. In a dissenting statement from August 2022, then-CFTC Commissioner Caroline Pham noted that Kalshi had submitted its congressional control contracts after meeting with congressmen as early as 2021.
Kalshi didn’t resort to the courts until after the CFTC ran out the clock after the 2022 submission and found the contracts failed the agency’s public interest review in 2023. That approach of remaining compliant with federal regulations goes back to Kalshi’s founding, when the company discovered that operating on the Solana blockchain would limit the company’s ability to go mainstream.
As it enters the sports arena, Kalshi is adopting compliance measures that have become standard in the sports betting industry. Introducing responsible trading features and partnering with an integrity firm signals how seriously Kalshi is taking its entry into sports markets.
With nearly $200 million in trading volume in its Men’s College Basketball Championship market, and many others to come, it’s crucial for Kalshi to assuage concerns about the safety and integrity of its sports offerings.
