Kalshi Launches Consumer Protection Hub and Partners with IC360 for Enhanced Integrity in Prediction Markets

On March 24, Kalshi announced the launch of a new responsible gaming hub and a partnership with integrity monitor IC360 as part of its ongoing efforts in the sports betting space. CEO Tarek Mansour shared the news via a post on X, highlighting the introduction of a “Consumer Protection Hub” that features tools such as deposit caps, trading breaks, and voluntary opt-outs. Mansour emphasized that these features work in harmony with Kalshi’s market surveillance team and regulatory systems.

While the term “responsible gambling” does not explicitly appear in the announcement, the features Kalshi is implementing align closely with those offered by regulated sportsbooks. Major operators in the industry commonly provide deposit limits, time restrictions, and self-exclusion tools for users.

In addition to the consumer protection measures, Mansour revealed a collaboration with IC360, whose insights are expected to bolster Kalshi’s efforts to prevent bad actors and report them to sports leagues and regulatory bodies. IC360 is well-known in the regulated industry, serving as an integrity monitor for various professional and collegiate sports leagues. As part of their partnership, Kalshi will utilize IC360’s ProhiBet service, which maintains an encrypted list of individuals prohibited from participating in prediction markets or sports betting.

This partnership will enable Kalshi to monitor prohibited bettors in real-time; however, there is currently no established connection between legal sports betting and prediction markets. It remains uncertain which regulatory body IC360 or Kalshi would notify regarding suspicious activity, as prediction markets are governed by the Commodities Futures Trading Commission (CFTC), which lacks specific experience in dealing with these matters.

Scott Sadin, co-CEO of IC360, expressed strong support for maintaining integrity in sports through innovative, technology-driven solutions and collaborative stakeholder engagement. He described the partnership with Kalshi as a prime example of these principles.

Critics of prediction markets, including those in the regulated gambling industry, have often cited the absence of responsible gaming safeguards and the risk of market manipulation as significant concerns. In light of this criticism, Kalshi’s introduction of consumer protection features appears to be a strategic move to address these issues.

Prediction markets, while relatively obscure for years, have gained traction, especially after Kalshi overcame legal challenges from the CFTC last fall. The markets experienced significant activity during the November elections, leading to substantial engagement in sports prediction markets, which has drawn the ire of some industry veterans. Many representatives, such as Uplay1 CEO Bruce Merati, argue that if prediction markets function like sports betting, they should be classified as such. Responsible Gaming Hub IC360

Kalshi’s previous partnership with Robinhood for the Super Bowl ended abruptly amid CFTC scrutiny, but contracts with Crypto.com remained active. More recently, Robinhood and Kalshi announced a partnership for the NCAA March Madness tournaments, with Robinhood stating it had been in close communication with the CFTC regarding the contracts.

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Reports indicate that Kalshi users generated nearly $250 million in contracts during the first two rounds of the tournament, closely mirroring the total handle of $252.9 million from all of Kansas in March last year. This figure also represents around 8% of the forecasted total $3.1 billion legal handle, according to the American Gaming Association (AGA). Consumer Protection Hub

In response to ongoing concerns regarding prediction markets, the CFTC announced plans to host a roundtable discussion on the topic by the end of April. Many of the comments received have been from tribal gaming interests, who argue that prediction markets constitute gambling and infringe upon sovereignty and exclusivity. The regulated industry has mostly remained quiet, possibly evaluating potential business opportunities.

Meanwhile, the federal landscape appears to be more favorable toward prediction markets. Kalshi appointed Donald Trump Jr. as an adviser in January and saw Brian Quinentz, a Kalshi board member, nominated by President Trump for the position of CFTC chair in February. Reports suggest Quinentz would not recuse himself from discussions related to prediction markets.

However, state regulators are beginning to push back. The Nevada Gaming Control Board (NGCB) issued a cease-and-desist order against Kalshi, declaring sports and election betting on prediction markets unlawful within the state. While initially ordered to cease operations by March 14, the NGCB later agreed to extend a limited period for additional time without revealing more details, and the investigation remains ongoing.

Massachusetts regulators are also taking action, as Robinhood came under scrutiny for its March Madness contracts, with the state’s secretary of state’s office issuing subpoenas to investigate the number of users trading sports contracts on the exchange and requesting marketing materials. Massachusetts Secretary of State Bill Galvin criticized Robinhood as employing gimmicks to attract investors, describing them as misleading in nature. Kalshi Responsible Gaming Hub IC360