Comment by nojito
10 hours ago
There’s no “house” or “book” aspect to Kalshi. They are nothing more than contracts that are bought and sold between individuals.
10 hours ago
There’s no “house” or “book” aspect to Kalshi. They are nothing more than contracts that are bought and sold between individuals.
Lots of types of contracts bought and sold between individuals are prohibited by law.
They problem is the federal government considers these particular contracts are generally legal, and the states have no authority.
Have you heard of Betfair? A UK company which has done "prediction markets" since 2000. In the Europe it is called a betting exchange and regulated like sports betting. And betting pools is another form of betting which is way older than that and there are no house in them either.
And by your argument poker or backgammon would not be gambling either.
>And by your argument poker or backgammon would not be gambling either.
They aren't. A sportsbook explicitly sets lines and you are betting that the line they set is incorrect.
How do they make money?
Just like other exchanges.
They charge trading fees.
They also place their own bets within their own market. They don't just make money on trading fees.
10 replies →
What about the special partners that put up bets that are basically just methods to launder the fact that there's a house?