- Kalshi is now offering sports event contract trading
- Kalshi is regulated by the Commodity Futures Trading Commission
- The offerings are similar to what Crypto.com currently has available
Kalshi is now officially in the sports event contract trading game.
The company filed a submission with the Commodity Futures Trading Commission (CFTC) on Wednesday, Jan. 22, to offer “Will <team> win <title>?”contracts to its customers. In its filing, Kalshi notified the CFTC it would begin to offer the contracts today, Jan. 23.
The event trading company is currently offering several sports contracts to its users, including the winner of the Super Bowl, the NBA champion, and conference champions for the NFL and NBA.
New Markets for Kalshi Customers
According to the company’s CFTC filing, Kalshi customers can purchase contracts for anywhere from $0.01 and at most $0.99. For each correct contract the customers hold, they will receive $1 in return. Losing contracts obviously return nothing.
Because the service is regulated by the CFTC, Kalshi can offer its contracts immediately to users through every state in the country.
Kalshi is offering the following sports event trading contracts to its customers:
- Super Bowl champion
- NFL NFC champion
- NFL AFC champion
- NBA champion
- NBA Western Conference champion
- NBA Eastern Conference champion
- NHL champion
- NCAA men’s basketball champion
Kalshi prohibits current and former players, coaches, and staff of the NFL, NHL, NBA, and NCAA from purchasing the contracts. It also prohibits employees of the league, league participants, owners of teams and the league, and household members and immediate family of those previously mentioned.
The new contracts went live today, but it remains to be seen if the CFTC will take issue with the new markets.
It’s worth noting that Kalshi recently named Donald Trump Jr. as a strategic advisor.
Will CFTC Review Kalshi’s New Contracts?
The regulatory commission has already opened a review on Crypto.com’s similar offerings. The CFTC initiated its review on Dec. 19, 2024, for contracts offered by Crypto.com based on the winner of a league championship and the hometown that will host a championship celebration, such as a parade, for its winning team.
The CFTC announced the contracts being offered by Crypto.com may involve a prohibited commodity in CFTC Regulation 40.11(a) and section 5c(c)(5)(C) of the Commodity Exchange Act. This specifically notes that registered entities shall not list for trading or accept contracts that involve “terrorism, assassination, war, gaming, or an activity that is unlawful under any state or federal law.”
The commission requested that Crypto.com cease its trading on these two contract types during the review, but a Crypto.com spokesperson noted in a statement to Sports Betting Dime it would continue to offer the contracts.
“We remain committed to working with the CFTC and will continue to support our customers and the trading of our sports title event contracts in all 50 states without interruption while we review the CFTC’s notification,” the spokesperson said.
Kalshi, a popular trading platform, has recently launched a new feature that allows users to trade on sports events. This innovative platform is changing the way people engage with sports, offering a unique opportunity for fans to profit from their knowledge and predictions.
The concept of sports event trading is simple: users can buy and sell contracts based on the outcome of various sporting events. For example, if a user believes that a particular team will win a game, they can buy a contract for that outcome. If their prediction is correct, they will earn a profit based on the contract’s price at the time of sale.
Kalshi’s platform offers a wide range of sports events to trade on, including popular leagues like the NFL, NBA, MLB, and more. Users can also trade on individual games, player performances, and other specific outcomes within each event.
One of the key features of Kalshi’s platform is its real-time trading capabilities. Users can buy and sell contracts throughout the duration of a sporting event, allowing them to react to changing circumstances and maximize their profits.
In addition to sports events, Kalshi also offers trading opportunities in other markets, such as politics and entertainment. This diversity of options allows users to explore different trading strategies and diversify their portfolios.
Overall, Kalshi’s new platform for sports event trading is an exciting development for both sports fans and traders alike. With its user-friendly interface and real-time trading capabilities, it offers a unique opportunity to engage with sports in a whole new way. Whether you’re a seasoned trader or just looking to have some fun, Kalshi’s platform is definitely worth checking out.
