Kalshi prediction market sees $5.4B in trades from users under 21

Prediction market Kalshi has seen significant trading volume from young adults aged 18 to 21, who have traded an estimated $5.4 billion so far this year. Of that total, approximately $3.9 billion was directed toward sports-related events and parlays.

Critics argue that Kalshi provides a loophole for underage gambling. While traditional sportsbooks are regulated at the state level and typically require users to be 21, Kalshi is regulated federally by the Commodity Futures Trading Commission as a financial exchange, allowing access to anyone 18 and older. This regulatory distinction has led to legal challenges, including a lawsuit from New York State alleging the platform operates an unlicensed gambling service.

Kalshi maintains that its exchange model is distinct from sportsbooks because its profits are not tied to trader losses. A spokesperson noted that users under 21 account for roughly 3.14% of the platform's overall trading volume. The platform offers markets on various real-world outcomes, including politics, finance, weather, and entertainment, alongside sports.