Last Week’s Gaming Highlights: Everything Turns into a Gamble

Kalshi is currently under fire from its users following a class action lawsuit filed last week, claiming the platform failed to honor payouts for bets related to when Iranian Supreme Leader Ayatollah Ali Khamenei would leave or be ousted from power. Khamenei was killed in strikes on Iran last month, but the lawsuit alleges that Kalshi did not implement a “death carveout” until after his death.

In the meantime, Kalshi is reportedly making strides to attract more female users to expand its audience. Recent reports indicate that the percentage of women on the platform has surged from 13 percent to 26 percent over the past ten months. Co-founder Luana Lopes Lara noted that this change involves “catering to [women’s] interests and expertise in ways that traditional financial markets haven’t.”

Here are some other notable updates from the past week regarding Polymarket, Kalshi, and the prediction market landscape:
* The rivalry between Kalshi and Polymarket extends to their CEOs, Tarek Mansour and Shayne Coplan, respectively. Reports suggest that Mansour is even avoiding mentioning “Polymarket” in public. Both companies are vying for the title of “world’s largest prediction market.”
* Both Kalshi and Polymarket have introduced event contracts that allow users to place bets on stocks and indexes related to the S&P 500.
* Sports betting is becoming increasingly popular on college campuses, with some students reportedly spending so much that they lie to family members, cut off friends, or struggle academically.
* DraftKings announced plans during a recent virtual investor day to launch a new super app called “DraftKings Sports & Casino,” which will include prediction markets, aiming to compete with Kalshi and Polymarket.
* Churchill Downs Incorporated, the owner of the racetrack hosting the Kentucky Derby, is pushing back against prediction markets. CEO Bill Carstanjen stated that “you need our express consent” to place wagers on horse races across any platform. The 1978 Interstate Horseracing Act mandates that off-track wagers, which could encompass those on prediction markets, require prior approval from the relevant racing associations and commissions.