The affected trader reported betting as much as 18 hours a day on Bitcoin binary trades, which a clinician described as a slot machine in your pocket. To attract new users, Kalshi has deployed advertising across TV, social media, sports stadiums, and transit hubs. The platform eventually banned the user only after he contacted the company directly to state he had a gambling addiction.
Tuesday, October 20, 2026
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Kalshi Bypasses State Gambling Bans by Claiming Not a Gambling Operator
Business18 days ago
A Pennsylvania resident lost more than $25,000 on the prediction market app Kalshi after the company ignored a state registry designed to block gambling addicts. Kalshi does not honor these self exclusion lists because it maintains that it is not a gambling operator, a stance that health clinicians say creates a loophole for those attempting to recover from addiction. The trader lost the funds on Kalshi's 15 minute crypto markets after previously filing for bankruptcy due to $50,000 in losses on FanDuel and DraftKings.
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