After bankruptcy, he was banned from sports betting sites. Then he found Kalshi
2 hours ago
- Thomas developed a gambling addiction on sports betting sites like DraftKings and FanDuel, leading to $75,000 in debt and bankruptcy.
- After self-excluding from sportsbooks, he discovered the prediction market app Kalshi and became addicted again, losing over $25,000.
- Kalshi claims it is different from sportsbooks because its profits are not tied to trader losses, but critics argue it attracts problem gamblers.
- Prediction markets like Kalshi are not regulated as gambling by states, so they do not participate in state self-exclusion lists, creating a loophole.
- Kalshi's aggressive advertising and lack of protections for vulnerable users have raised concerns among mental health experts.
- Problem gambling affects nearly 20 million Americans, and Kalshi's rapid growth (nearly $60 billion in bets in one month) and proposal to allow leveraged bets exacerbate risks.