Kalshi's Under-21 Trading Volume Reaches $3.9 Billion Amid Regulatory Controversy

Kalshi has reported that users under the age of 21 have traded $3.9 billion in sports and parlay contracts this year. While sports betting is restricted to those over 21 in most U.S. states, Kalshi allows account creation for individuals aged 18 and older, raising concerns about the boundary between prediction markets and gambling regulations. According to Fortune, the trading volume for users under 21 is $3.9 billion, while CNN reports that users aged 18 to 21 have a trading volume of $5.4 billion, with $4 billion attributed to sports and parlay trades. The American Gaming Association (AGA) estimates that users aged 18 to 20 have driven over $5.012 billion in sports trading on Kalshi. Kalshi views its contracts as financial derivatives regulated by the Commodity Futures Trading Commission (CFTC), while the New York Attorney General's office claims that Kalshi is operating an unlicensed gambling business. On August 28, the U.S. Court of Appeals for the Ninth Circuit determined that Nevada is likely to apply state gambling regulations to Kalshi's sports-related event contracts. Kalshi is currently involved in lawsuits across 20 states and operates safeguards to protect younger users. Currently, Kalshi allows account creation for individuals aged 18 and older, with the trading volume for young users in sports-related transactions estimated to be in the billions.