Federally regulated prediction market Kalshi is diversifying its offerings with the launch of event contracts for sporting events.
Earlier this week, Kalshi requested approval from the Commodity Futures Trading Commission (CFTC) to offer contracts on sporting events hosted by America’s major professional sports leagues. Kalshi, which has gained popularity via its political contracts, is allowing its users to buy and sell contracts regarding the outcome of sports events.
Kalshi made its sports events contracts available to users on Thursday after submitting its request to the CFTC a day prior. Its initial request to the CFTC sought to approve the offering of a “Will <team> win <title>?” contract. Kalshi, which offers contracts for up to $0.99, has made its sports event contracts available to its users in all 50 states.
As of Thursday afternoon, Kalshi has garnered over $150,000 in volume for its contracts on who will win March Madness in 2025 between Duke and Auburn. Its contracts for who will be the next Dallas Cowboys head coach have garnered over $137,000 in volume.
Kalshi is also offering its users contracts for this weekend’s NFC and AFC Championship games. The market will also be providing contracts for next month’s Super Bowl.
Kalshi under CFTC scrutiny
The New York-based company has launched sports event contracts as it faces regulatory scrutiny for its political event contracts, which exploded in popularity late last year.
Earlier this week, the U.S. Court of Appeals for the District of Columbia Circuit held an oral argument with Kalshi and the CFTC regarding the legality of political contracts.
The oral argument came after the CFTC blocked Kalshi in 2023 from listing its political event contracts due to state gaming laws nationwide banning wagering on politics.
CFTC General Counsel Rob Schwartz argued the case for the organization last week but is no longer employed by the group. With the appointment of new acting Chair Caroline Pham, a number of key positions, including general counsel, have been replaced.
Pham authored an opinion for the CFTC last year arguing in support of election event contracts and expanding the scope of event contracts in general.