DraftKings‘ newest ads call out Kalshi by name, pointing to slow withdrawals, among other complaints. Days earlier, Kalshi ran into the opposite problem on a high-profile market, moving fast enough to settle a game before it was actually over.
Naming a competitor outright is a direct move, considering the industry usually sticks to general jabs at each other. However, DraftKings ran two ads targeting Kalshi’s negative reviews, and touting its own DraftKings Predictions.
The timing is also hard to ignore as the ads were released after Kalshi’s handling of the Western Michigan-Michigan game on Saturday. Kalshi had to claw back payouts from Western Michigan winners because of a premature settlement.
Ads targeting Kalshi reviews
The first ad linked on X by @DataBasedBets is 15 seconds and displays a skeleton waiting for a withdrawal on Kalshi. It also includes customer reviews on Kalshi, which details a user expressing frustration on a trade that hasn’t closed for four days. Another said “don’t download” and that it’s “very hard to withdraw my money.” DraftKings captioned the ad:
“Get fast withdrawals, 24/7 support and feel safe & secure with DraftKings Sports.”
The second ad is a 37-second clip that warns potential users to view customer reviews in the App Store before downloading. DraftKings brings some reviews to light on Kalshi’s “terrible” customer service and “slimey” and “shady” app.
Kalshi’s handling of Western Michigan-Michigan
The Western Michigan-Michigan game was already a source of controversy before Kalshi got involved.
Kalshi started paying out Western Michigan winning contracts at 10:52 p.m., before officials decided to put one more second on the game clock after a review, according to CNN‘s Marshall Cohen. That extra second led to Michigan’s game-winning 47-yard Hail Mary and a 13-12 final.
On a market that saw $18.6 million in volume, Kalshi had to claw back those payouts and pay the correct side. The game wasn’t fully settled on DraftKings until 11:17 p.m., after the game had concluded.
New guidelines released by the NCAA state that officials must use the “embedded game clock contained within the program feed.” Had that been in place Saturday, Western Michigan would have won 12-7 and Kalshi would have been correct on its original payout.
Regulatory backdrop
Kalshi was unable to offer sports contracts on the Western Michigan-Michigan game in the Great Lakes State after a Michigan court ruled a temporary restraining order against Kalshi. The prediction market is also barred from sports contracts in Connecticut, Massachusetts, Nevada, New York, Utah and Washington.
DraftKings is available in all 50 states, but what is offered in each state varies. The operator offers regulated sports betting in 26 states plus Washington D.C.
In states where sports betting is not legal, DraftKings offers DraftKings Prediction, which include sports-based contracts. The company launched a nationwide promotion offering free gas in California, Florida, Georgia and Texas to tout the prediction platform.
