Kalshi will cap deposits at $2,500 per month for traders aged 18 to 20 under new safeguards the prediction market operator announced Tuesday.
The prediction market says the changes are meant to reduce problem trading among young adults and encourage responsible play as the U.S. midterm elections approach, according to the release. Users need only be 18 years old to trade on Kalshi, while most states set a minimum age of 21 for sportsbooks.
The two largest prediction markets, Kalshi and Polymarket, have both rolled out responsible trading tools as sports event contracts have spread across the country. It comes a day after both platforms formed a partnership with the NBA to become the “Preferred Prediction Market Exchange of the NBA.”
Kalshi adds alerts for concentrated trades
Kalshi will also alert new traders with balances above $1,000 who put more than 25% of their funds into a single trade, encouraging them to diversify.
COO and co-founder Luana Lopes Lara compared Kalshi to the stock exchange, which also has a minimum age of 18, while acknowledging that new traders need more education and safeguards.
Kalshi also partnered with parent and youth safety organizations Parent ProTech and ConnectSafely to publish guides to prediction markets for parents.
Prediction markets boost responsible trading tools
As sports event contracts dominate the volume on prediction markets, Kalshi partnered with the National Council on Problem Gambling and invested $2 million in the organization. Kalshi offers trading breaks, self-limits, self-exclusion and mental health resources to its users. As part of the deal, the NCPG created a Financial Services & Trading membership category naming Kalshi as a platinum-level member.
The move drew pushback, as the Ohio Casino Control Commission, Michigan Gaming Control Board and the Nevada Council on Problem Gambling all withdrew from the NCPG over the summer. The fallout was followed by the resignation of executive director Heather Maurer last month and the appointment of Charles H. Jeffers II as interim executive director on Monday.
Polymarket followed suit and added a host of responsible gaming tools commonly found on regulated sports betting apps. It also partnered with Birches Health to provide mental health treatment and is developing educational materials to help customers understand which tools are available.
Novig offers deposit limits, cooldown periods and self-exclusion for traders. It is also one of two prediction market platforms, along with Fanatics Markets, to set its minimum age at 21.
