Kalshi Notifies CFTC of Rulebook Changes Targeting Athlete Harassment by Bettors
Kalshi notified the CFTC on Oct. 13 of new rulebook terms defining athlete harassment as impermissible, with sanctions up to flat fines. It partnered with Signify Group and IC360 on the Bad Actor Program to link abusive messages to accounts. The step expands beyond sportsbooks to address athlete complaints in prediction markets.
SCCG Take — Kalshi’s rules align prediction platforms with sportsbook standards on conduct. Operators should assess enforcement precision to maintain user trust while addressing league and regulatory pressures.
Kalshi has notified the Commodity Futures Trading Commission (CFTC) that it is adding anti-harassment terms to its rulebook. The prediction market operator can now sanction users who harass athletes on social media, with penalties that include financial fines. The filing dated Oct. 13 comes after criticism from athletes and coaches over betting-related abuse that has spread to CFTC-regulated platforms.
The rulebook now classifies as impermissible “any conduct reasonably likely to cause emotional distress to a third-party in connection with trading activity.” This includes actions that bully, frighten, threaten, scare, coerce, harass or intimidate. Sanctions can include account deactivation, police referral and financial penalties. A Kalshi official told Sportico that the latter could mean a flat fine regardless of wager size.
Tech Partnerships to Identify Violations
Kalshi is partnering with Signify Group and IC360 on the Bad Actor Program. The arrangement identifies abusive social media messages tied to Kalshi activity and links them to user accounts. Financial details were not disclosed. DraftKings joined last month and Fanatics joined in June. Kalshi said in a statement, “The initiative is focused on abusive, threatening and potentially criminal behavior, rather than legitimate criticism or discussion of sports performance.”
The changes follow American women’s tennis star Jessica Pegula’s criticism of Kalshi’s U.S. Open sponsorship. Pegula said players receive “a lot of hate on social media” from bettors while tournaments profit from such deals. IC360 previously worked with Kalshi on a nationwide self-exclusion program and supplies betting integrity technology that aided the lifetime ban of former Toronto Raptors player Jontay Porter.
Major U.S. sports leagues have responded with a letter to state regulators seeking permanent bans for abusive bettors and planned PSAs. On Tuesday the NBA and WNBA launched a campaign with the National Council on Problem Gambling to educate young adults on risks from sports betting and prediction markets.
Reporting: Sportico
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