Kalshi CEO Grilled Over Insider Trading Concerns
Kalshi CEO Tarek Mansour faced blunt questions about insider trading concerns on his platform on Tuesday.
When asked about whether a Bad Bunny dancer could trade on halftime markets based on their behind-the-scenes knowledge, Mansour responded:
“If you did research and you were in SF [San Francisco] and you were…running around the stadium trying to get information about what song was going to get played, that’s information. It’s fair game to trade. If you had access to information that you’re not supposed to reveal to the public, [that’s] material non-public information. You cannot trade on that.”
Mansour alluded to the breach of duty that the Commodity Futures Trading Commission (CFTC) uses when it addresses insider trading cases. Derivatives traders commonly have access to non-public information. However, the CFTC prosecutes insider trading when a trader breaches a previous duty, like when an exchange employee uses their knowledge of positions on an exchange to manipulate underlying markets.
This interview comes less than a week after Mansour announced new insider trading measures at Kalshi on Feb. 5.
The scrutiny of prediction markets hasn’t stopped at insider trading. New journalists are beginning to move onto the beat, too.
Media moves to prediction markets
Major outlets have moved reporters onto the prediction market beat.
Jack Newsham at Business Insider has begun shifting focus to prediction markets within his financial beat. Kate Knibbs at WIRED and NBC News’ Suzy Khimm both announced their shift to cover prediction markets on X on Tuesday.
Now that prediction markets have gone mainstream, they’re facing growing scrutiny from financial journalists and mainstream media sources. The platforms, in turn, have shifted to defense as they continue to fight legal challenges from state gaming regulators.
State legal challenges, still no Third Circuit ruling
In a letter dated Feb. 6, Nevada advised the Ninth Circuit that it would “file a civil enforcement action” against Kalshi on Feb. 17.
BREAKING: Nevada tells Ninth Circuit that it will be filing a civil enforcement action vs. Kalshi in state court next week, pointing to Kalshi’s dramatic expansion of its business, including “massively increased” trading volumes rather than attempting to maintain the status quo. pic.twitter.com/xx6fD1e2hD
— Daniel Wallach (@WALLACHLEGAL) February 11, 2026
This action comes on the heels of Nevada’s ongoing efforts to block prediction market platforms from offering sports contracts without gaming licenses. Polymarket has geofenced in Nevada as the platform fights its temporary restraining order.
One of the most impactful opinions remains to be written. The Third Circuit case from New Jersey’s appeal against Kalshi heard oral arguments in September 2025. An opinion has yet to be issued, leaving the trajectory of sports contract cases uncertain.