Moneyball<\/a>. They\u2019re more quantitative. They love doing analysis on the economy, and they like the idea that on Kalshi you have to be smarter than your neighbor\u2014not smarter than some sort of system that\u2019s stacked against you. People do feel that, even in the stock market, the system is rigged against them. How are you going to beat the large hedge funds today on trading stocks? And the answer is, you probably won\u2019t. It\u2019s impossible for an individual to do that. On Kalshi, there\u2019s a level playing field. If you have studied a lot about things like inflation, or Covid, or culture, or Taylor Swift, or sports, you have an advantage.<\/p>\nGamblers also think research gives them an edge, whether it\u2019s playing the horses or studying sports statistics. Obviously if you\u2019re betting on events, if you know more you\u2019re more likely to win.<\/p>\n
Gambling is adverse to the end consumer, whereas financial markets are more open and transparent. You can enter when you want and you can exit when you want. If you make a lot of money at traditional gambling places, you will get shut down.<\/p>\n
Still, people on Kalshi are risking real money, and that can have serious financial consequences. Gambling sites have to have long disclaimers and give the phone numbers of Gamblers Anonymous and other programs. You don\u2019t have to do that. I can\u2019t see why not.<\/p>\n
The CFTC has an extremely comprehensive customer protection regime, and it has existed for decades. You see fewer issues with those markets, even though they\u2019re inherently riskier than what you see in sports betting. It\u2019s easy to just criticize Kalshi because we\u2019re growing so fast. But we started in 2018 and didn\u2019t launch until four years later, because we wanted to get regulated up front. What were we doing in those four years? We weren\u2019t just waiting at the beach.<\/p>\n
What were you doing?<\/p>\n
It\u2019s a bit like getting regulated as a bank. There\u2019s a whole set of things that you have to do around market integrity, customer protection, where the funds are stored, audits and reporting visibility, and transferring to the federal government. You need to show how your entire operation is structured to make sure that it\u2019s actually safe, legitimate, and regulated.<\/p>\n
It\u2019s like you hacked the system to get regulated.<\/p>\n
Hacked? That seems like we did something wrong! Are we getting punished now for going regulated?<\/p>\n
I don\u2019t use the word in a pejorative sense. I wrote a book about good hackers!<\/p>\n
We, as 22-year-old cofounders, said we want to do things right. We want to bring this innovation to America. We believed in this market so much, we were willing to spend four years\u2014or however long it was going to take\u2014to make it happen. We wanted to make it safe and do it responsibly, because we wanted to do it for the long term. The coverage of Kalshi misses that, because all of our competitors didn\u2019t do any of that.<\/p>\n","protected":false},"excerpt":{"rendered":"No matter what mechanism, there\u2019s still a bet made. Maybe you are offering a better deal. As far…\n","protected":false},"author":2,"featured_media":321699,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[18909,114,8565,163,85,46,38094,43964,522,523,29385,303,34880],"class_list":{"0":"post-321698","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-mental-health","8":"tag-big-interview","9":"tag-business","10":"tag-gambling","11":"tag-health","12":"tag-il","13":"tag-israel","14":"tag-kalshi","15":"tag-longreads","16":"tag-mental-health","17":"tag-mentalhealth","18":"tag-prediction-markets","19":"tag-startups","20":"tag-super-bowl"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/321698","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=321698"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/321698\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/321699"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=321698"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=321698"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=321698"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}