Kalshi, the prediction market platform known for allowing users to bet on a wide array of events, has announced its expansion into sports betting. With the Super Bowl fast approaching on February 9, the company is offering sports wagers in all 50 U.S. states, a significant move ahead of the NFL playoffs.
Founded in 2018 by Tarek Mansour and Launa Lopes Lara, Kalshi originally made waves by allowing users to bet on political outcomes, including the U.S. presidential election, as well as on events like the Oscars and Bitcoin’s future price movements. Now, the company is broadening its offerings to include sports, capitalizing on the booming sports gambling market, especially with the upcoming Super Bowl.
“Today, on the heels of our explosive growth, Kalshi takes its next big step: Sports,” Mansour shared on X (formerly Twitter) on Thursday.
Kalshi’s approach to sports betting differs from major competitors like FanDuel and DraftKings, which are only permitted to operate in states where traditional sports betting has been legalized. Unlike these platforms, Kalshi enables users to place bets in all 50 states, as the company functions on a different model. Instead of taking a share of losses from users’ bets, Kalshi earns revenue by charging a cut on each bet placed, with users directly trading bets with one another on the platform.
This strategic model allows Kalshi to circumvent traditional state-based restrictions on sports betting. On Wednesday, the company filed with the Commodity Futures Trading Commission (CFTC), informing the agency of its new betting contracts on American sports championships, including the NFL, NBA, and NHL. Kalshi’s offerings also include novelty bets, such as wagering on who will become the next head coach of the New Orleans Saints.
The filing echoes a similar effort by digital-currency exchange Crypto.com, which had sought to enter the sports betting market before Donald Trump’s presidency. However, the CFTC’s outgoing chair requested that Crypto.com remove its sports betting offerings, a request that was not complied with.
The announcement of Kalshi’s sports betting expansion comes just days after the company revealed that Donald Trump Jr. would join its advisory board. Mansour described Trump Jr. as a “pioneer in these spaces” and someone attuned to the interests of American consumers. In an appearance on CNBC’s Squawk Box, Mansour emphasized that Kalshi is “not a political company,” distancing the firm from partisan concerns despite Trump Jr.’s involvement.
Kalshi’s entrance into the sports betting arena signals the company’s ambition to tap into the rapidly growing market, especially as the U.S. sports betting landscape continues to expand. The platform’s unique model could pave the way for future innovations in how Americans engage with prediction markets.
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