New Markets Generating New Customers
While Kalshi’s attorney continues to insist sports prediction markets aren’t a form of gambling, it didn’t stop them from adding more markets in 2025. Just before the football betting season kicked off, the operator announced that it would be launching new betting markets. Those include spread, total, and prop bet markets. Customers will also be able to create parlays, making the experience almost indistinguishable from sports betting.
The move took away a massive advantage from the sports betting industry. The unique betting markets were something that could only be found with sportsbooks, but that’s no longer the case.
The most significant damage done to the industry likely came from Kalshi’s new parlay offering. Sportsbooks attribute a large chunk of their revenue to parlays, which lose at a far higher rate. However, they also offer larger payouts, tempting bettors to take a chance at winning big.
Controversial Advertising Pays Off
Despite Kalshi’s legal claims, its advertising made it clear that the platform was offering legal sports betting in all 50 states. The ads highlighted the new betting markets, and almost omitted the terms “sports contracts” or “sports prediction markets” could barely be found.
Not only do these ads completely ignore Kalshi’s insistence that it isn’t offering sports betting, but they are also misleading. The concern is that people who sign up won’t know the difference between prediction markets and sports betting.
While they offer similar betting options, prediction markets lack the strict regulations and responsible gaming requirements of sports betting. That can make them dangerous for populations that are vulnerable to problem gambling.
Kalshi Shouldn’t Celebrate Quite Yet
While Kalshi’s Week 1 was a smashing financial success, the operator would be wise to hold off on celebrating too much.
One reason for that is the mounting lawsuits against the company. Those include those filed by Indian tribes, who claim the markets being used on tribal lands violate the Indian Gaming Regulatory Act. If they are able to win their lawsuit, it would force Kalshi to geofence tribal lands, which would be incredibly difficult.
There were also grumblings among customers who felt Kalshi misrepresented their pricing, which ended up matching or being higher than most sportsbooks. There were also complaints about other new features, suggesting a potential second-week dip.
