Kalshi requires users to disclose their current employment in order to trade in sensitive markets.

The predictive market platform Kalshi has implemented a policy that requires users to disclose their current employment in order to trade in certain markets. The measure was announced on Tuesday (9). The aim is to limit the use of insider information on the platform.

The company already required disclosure of work for bets that pose a risk to national security. Now, the rule extends to markets linked to sensitive private information, according to a report by [source name]. The New York Times.

How the new policy works

Users must fill out a form. online disclosing where they operate in order to bet on specific markets. These markets might include bets on Tesla deliveries in a given quarter or the selling price of a work of art.

Kalshi allows betting on a variety of topics. These include sports, politics, weather, and even the location of Taylor Swift and Travis Kelce's wedding.

The platform will not verify the employment information provided. Verification will only occur if an employer flags suspicious activity related to the potential use of insider information. In some cases, a person may be prevented from conducting a specific transaction based on their place of work.

Context of change

The policy comes at a time of increasing pressure on regulators to crack down on abuses in prediction markets. These markets are growing rapidly and are highly profitable.

There are concerns about the use of the platform by politicians and economic agents who gamble on their own actions or based on restricted information. Accurate predictions about the timing of government actions in Iran and Venezuela have raised alarms. Google search results obtained by an employee of the tech giant have also raised concerns about leaks of sensitive data.

Last week, US authorities said they were investigating whether former congressman George Santos had placed a bet on his own attendance at President Donald Trump's State of the Union address. The speech took place in February.

Security measures

Kalshi formed an advisory committee this year. The committee recommended new, stricter security measures. Among the recommendations is making it easier for whistleblowers to report suspicious activity.

The company will investigate suspicious cases. It may request proof of employment or refer the case to the police authorities when there are indications of suspicious activity.

“Kalshi does not offer markets on war, assassination, or violence,” the company said in a statement. But “we recognize that even common markets on leadership or foreign policy can present incidental national security concerns.”

Legislation in progress

Draft bills have been introduced in the U.S. House of Representatives and Senate. The proposals would prohibit any public employee from placing bets in prediction markets using non-public information obtained on the job.

Governors of states such as New York and Illinois have signed legislation prohibiting state employees from using insider information for gambling.