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00:00All right. Kalshi, the prediction market company, is in the news again, this time an appeal of their election bet offers.
00:08For those unfamiliar, Kalshi in the prediction business, not in the sports betting business, but initially known for being able to take predictions on the presidency, like elections and things like that.
00:20What's the latest with Kalshi?
00:22Yeah, so first of all, talking about discussing things, Kalshi is the topic of discussion in this industry.
00:27Because it is available in all 50 states and is seemingly going forward and not worried too much about the challenges from certain state gaming regulators who are saying, no, you are betting.
00:40You can't do it here. But to your point, this is the CFTC.
00:44They have dropped an appeal that, you know, said that election betting is OK.
00:48They said, wait a second, we don't like that. Because, yeah, last year at first they said, no, you can't take election bets or prediction or trade on elections.
00:58And then eventually it was OK. And then the Kalshi went ahead and did it and made quite a bit of money and saw a bunch of volume go through in just a month or a month and a half of allowing it on the platform for the 2024 election.
01:13You know, so this is just kind of it brings a lot of questions.
01:18There's lots of concerns about it from people in the industry and watchdogs and saying, you know, this could cause integrity issues in something very foundational to the U.S.
01:28and how elections work and kind of where things can go.
01:31So we'll see. But it is the CFTC just kind of loosening up on Kalshi still, you know, they've allowed them to offer sports prediction markets.
01:42You know, do you think somebody is going to win a series? Do you think somebody is going to get a hit?
01:47And those continue to to be added pretty much daily, it seems like, on Kalshi.
01:52And so we'll see how much more that kind of goes through.
01:55Of course, we've had multiple state regulators say, hey, you can't do that, including Nevada and New Jersey, two of the leading gaming regulators in the nation.
02:04And, you know, there's been a couple lawsuits that have gone Kalshi's way in those states so far.
02:10So it's going to be an interesting thing to just to watch.
02:14I mean, does this continue to grow? It is available again, all 50 states.
02:19So if you're in California and you don't have legal sports betting, you can legally go to Kalshi and pick a game winner or a game loser.
02:28And so, you know, that's a huge development in this industry.
02:35And, you know, we've seen some action and moves on the major platforms like DraftKings.
02:41They've thought about, you know, going towards this way in some markets and we haven't seen anything go further than that.
02:49But, yeah, it's, you know, the election market and the CFTC's lax take on that now is interesting because they also, if you recall, canceled a roundtable that was going to look in the sports trading.
03:02And we saw lots of state regulators, platforms, the like, send letters in to be discussed in that roundtable.
03:10So, you know, is that going to be rescheduled and where that goes, again, yet to be seen and where the regulated regulator pushback on Kalshi goes, again, yet to be seen.
03:22But, again, it's available in all 50 states and you can basically bet on sports.