Kalshi Blocks Insiders From Betting on Their Own Outcomes

Prediction market platform Kalshi is putting up walls between insiders and the bets that could make them rich. The company announced new guardrails designed to preemptively block people from trading in markets where they have a direct stake in the outcome.

Athletes, coaches, and sports officials will be barred from betting on their own sports. Political candidates won't be able to trade on their own campaigns. The move targets the most obvious conflict-of-interest scenarios in prediction markets.

It's a self-regulatory play. As prediction markets gain mainstream traction, the integrity question looms large. If a politician can bet against themselves or an athlete can wager on their own game, the whole market's credibility crumbles.

Kalshi is essentially building the insider trading rules that traditional financial markets have enforced for decades — before regulators force their hand.