Kalshi to Require Employer Disclosure for Certain Prediction Markets

Kalshi announced new regulations mandating that some users reveal their employers after recent allegations of insider trading on prediction markets. The decision came after an advisory committee recommendation for improved security measures to better deal with possible insider trading and manipulation.

The types of markets that could require the employment disclosure would include those related to company performance and national defense. Sportsbook Companies Struggling As Prediction Markets Grow

Hedge funds and other stock traders have made $2.3 billion by short-selling stocks of top U.S. and European online gambling companies this year. DraftKings stock price has fallen from a high of about $48 in August to a close of $30.02 on Tuesday. FanDuel parent company Flutter Entertainment’s stock price traded at about $307 in late August and closed at $110.80 on Thursday. FanDuel recently went through a third round of layoffs in less than a year. The rise of prediction markets could mean reduced tax revenue for states.