Kalshi is tightening who can trade on its prediction markets, drawing clearer limits around insider activity as the platform grows into more sensitive areas.
In a blog post published Monday (March 23), the company said it is “launching new technological guardrails that preemptively block politicians, athletes, and other relevant people from trading in certain politics and sports markets.”
The changes target political candidates and people involved in college and professional sports. Kalshi said it has “launched tools that will aim to preemptively block political candidates if they try to trade on their own campaigns.”
The company added that it already blocks elected officials such as members of Congress, and said the new system is designed to extend those checks to candidates as well.
Kalshi also described a new sports policy. It said “individuals involved in college and professional sports (including athletes, personnel, and referees) will be preemptively blocked from trading markets associated with sports in affiliated leagues they are involved in.” According to the post, the trades were already banned under existing rules, but enforcement previously came after trades were placed.
The company said the updated system follows “months of collecting and developing screening lists for both collegiate and professional sports leagues.” Working with integrity-monitoring firm IC360, Kalshi said “known athletes, officials, and employees will be blocked from trading in associated markets.”
New rules from Kalshi target political and sports contracts
Kalshi described the update as part of a wider compliance push tied to growing regulatory attention. The company said the effort was developed over months and “proactively address[es] the CFTC’s guidance and Congressional bill proposals to prevent insider trading.”
Kalshi said it “recently brought an enforcement action against a candidate who traded on his own election in violation of Kalshi’s exchange rules.” It added: “Today’s update means that our systems will now aim to preemptively block these kinds of trades.”
Alongside trade restrictions, the company is adding reporting tools. It said it is introducing “a whistleblower functionality straight in our market page,” so users can flag suspicious activity using public trading data.
Rival platform Polymarket has tightened its own rules after disputes tied to political bets and early cashouts, including a high-profile market connected to Venezuela’s elections where questions about informational advantages surfaced.
Lawmakers are also weighing new limits. A proposal known as the “Bets Off Act” would restrict certain government-related prediction markets.
Kalshi’s leadership has argued that clearer restrictions are necessary if the category is to gain regulatory acceptance. For now, the company is attempting to put more weight on prevention.
“Ensuring market integrity is not just a goal – it is a cornerstone of our business model,” the company wrote.
Featured image: Kalshi / Grok
