Amid continued scrutiny, prediction markets operator Kalshi has unveiled new measures which it says are focused on strengthening protections for its users and ensuring integrity is upheld in its sports trading operations.
The company’s CEO Tarek Mansour posted on X to announce a new Customer Protection Hub which will include several guardrails we have come to expect from online sportsbooks.
Tools will include deposit caps, trading breaks and voluntary opt-outs, which Mansour said will complement Kalshi’s “internal market surveillance team and regulation systems to improve our market integrity.”
“No important financial innovation has ever been created without critics,” Mansour wrote. “… That said, criticism and doubts play a crucial role in this process: they help stress test new systems and often constructively encourage them to get better.
“From day one at Kalshi, we have been conscious of our position in building prediction markets and we carry the responsibility of fostering and preserving trust in them … We hope that our Hub sets a new standard of customer protection for the industry and encourages others to follow suit.”
No important financial innovation has ever been created without critics.
— Tarek Mansour (@mansourtarek_) March 24, 2025
• Credit cards were going to drive “reckless consumer spending”
• Mutual funds were seen merely as a way to speculate and risk people’s savings
• ETFs were feared because they could increase volatility… pic.twitter.com/iUsHcog9SK
Kalshi’s sporting event contracts have come under scrutiny from regulators including the Commodity Futures Trading Commission (CFTC) and the Nevada Gaming Control Board (NGCB), as well as sports stakeholders such as Major League Baseball (MLB).
In a letter dated March 7, the MLB stressed that, “as the resemblance between sports event contracts and traditional sports betting markets continues to grow, so too does the need to replicate the integrity and consumer protections that exist at the state level.”
While Kalshi’s expansion into sports prediction markets have been the headline topic in recent weeks, the new Hub will span all of its trading, not just sports-specific markets.
Kalshi teams up with IC360 on sports monitoring
Kalshi also announced on Monday a new partnership with Integrity Compliance 360 (IC360) that specifically focuses on its sports offerings.
Mansour said IC360’s data “will enhance our Customer Protection Hub’s ability to prevent bad actors and report them to the leagues and relevant regulatory bodies.”
In a release, Kalshi said it will use IC360’s integrity monitoring and ProhiBet services in an effort to further upgrade its compliance infrastructure. ProhiBet is IC360’s encrypted list of individuals who are prohibited from engaging in prediction markets or sports betting. It offers encrypted data cross-referencing, allowing Kalshi and its partners to monitor for prohibited bettors in real-time.
“From the beginning, we knew the only way to achieve the true potential of prediction markets was to build a market that was as safe, trustworthy, and compliant as possible,” added Mansour. “Every decision we’ve made at Kalshi has followed that core principle, and our partnership with IC360 is rooted in that belief. We’re excited to have them as a partner to help ensure our markets remain the gold standard in safety and integrity.”
IC360 co-CEO Scott Sadin added in the release that the firm “strongly believes that integrity in sport can be achieved through innovative technology-driven solutions and collaborative stakeholder engagement.”
“Our partnership with Kalshi is a terrific embodiment of these principles,” said Sadin. “We’re looking forward to delivering our best-of-breed integrity monitoring and ProhiBet services, while working closely with Kalshi to foster a compliant, transparent & ethical prediction market ecosystem.”
