Kalshi Says It Does Not Operate Like a Sports Book

Summary

Kalshi head of enforcement Robert DeNault defends the prediction market against state and local regulatory pressure, arguing it operates a CFTC-regulated exchange rather than a sportsbook. He explains the company's surveillance and enforcement approach, a Nasdaq data-surveillance partnership, and how prediction markets respond to manipulation. The conversation focuses on regulatory legitimacy rather than specific investment recommendations.

• New York state and New York City are investigating Kalshi and competitors over gambling and advertising practices.
• DeNault says Kalshi follows CFTC rules with real-time and look-back surveillance for insider trading and manipulation.
• Kalshi has referred suspicious activity to the CFTC, which is now bringing enforcement cases.
• He contrasts the exchange model with sportsbooks and argues for federal over state regulation.
• Kalshi announced a Nasdaq surveillance-tool partnership to offer data access to institutional clients and regulators.
• DeNault says Kalshi election markets have been nearly 100% accurate three months out.
• He cites an LA mayor race trade that corrected within nine seconds as evidence of market self-correction.