Kalshi has stopped offering sports mention markets as federal regulators reportedly review the issue.
The Commodity Futures Trading Commission launched a review of mention markets recently, according to NPR. Mention markets allow traders to wager on word choices of sports broadcasters.
Kalshi is still offering mention markets on political events, earnings calls and live newscasts. Polymarket offers mention markets on its overseas sites, but not its U.S. platform.
The mention markets inquiry is the latest in increased scrutiny by the CFTC as questions around the integrity of prediction markets continues to arise. There is no timeline for Kalshi to offer the markets again, according to NPR.
Kalshi quietly paused sports mentions
The sports mention markets have been down since the end of July, according to Dustin Gouker of the Event Horizon newsletter.
The announcement was sent to users on Kalshi’s Discord on July 31: “We are temporarily pausing listing of announcer markets and will provide an update when we can.”
Sports leagues against mention markets
The National Football League asked prediction markets operators in March to not offer trades on easily manipulated events.
That includes contracts on what broadcasters might say during a game.
Major League Baseball also brought up concerns of easily manipulated events to the CFTC.
Mention market issues
Last month, the CFTC revealed President Donald Trump’s teleprompter operator, Gabriel Perez, was profiting on mention market trades on Trump speeches.
Kalshi said its internal surveillance tools flagged the trade and then alerted federal regulators.
The New York Times reported this week on how prediction markets are flagging insider traders, but few of the cases will result in any charges.
