Frequently Asked Questions
General
What are prediction markets?
When was Kalshi founded?
Why are prediction markets important?
How does trading sports-related Event Contracts differ from sports betting?
Why can Kalshi offer sports-related Event Contracts in states where sports betting is prohibited?
Which tools does Kalshi use to monitor and investigate suspicious activity?
How do you protect against insider trading?
Is your surveillance the same as that of the stock market?
How do you engage with the CFTC?
What can't people trade?
Kalshi vs. Sportsbook ComplianceCustomer Personal Identification
Requirement/Policy
Sportsbooks
Kalshi
Address Required
SSN Required (in whole or in part)
Phone Number Required
Valid Government-Issued ID Required
Date of Birth Required
Verification and Prohibitions
Requirement/Policy
Sportsbooks
Kalshi
Acknowledgement of Event Wagering Terms and Conditions or Rules
Minimum Age Stated on Platform
Measures to Prevent Underage Access
Immediate Blocking of Underage Play at Approved Account
Learn More
Minimum Age to Register & Participate
21+Learn more
18+
Duplicate Account Prevention
Record-Keeping
Requirement/Policy
Sportsbooks
Kalshi
Written AML Procedures or Compliance Standards
Learn More
Suspicious Activity Reporting to Regulator
Recordkeeping Requirement – Retention of records for 5 years
Review/Audit by Regulators for Compliance
Learn More
Kalshi: Additional Compliance Requirements
RequirementDetails
CFTC DCM Core Principle 3: Contracts not Readily Subject to Manipulation
DCMs may only list contracts that are not readily susceptible to manipulation.
Kalshi maintains safeguards against outcome manipulation and access to non-public information, including:
  • Automatic trade surveillance and suspicious behavior detection
  • User monitoring and know-your-customer requirements
  • Disciplinary sanctions and referrals to the CFTC and other applicable regulators
CFTC DCM Core Principle 11: Financial Integrity of Transactions
DCMs are required to establish and enforce rules and procedures for ensuring the financial integrity of transactions entered into on or through the facilities of the contract market, and rules to enforce the financial integrity of any FCM and IB and the protection of customer funds.
Each participant must be in good standing and comply with Kalshi's member eligibility standards.

Kalshi's trading system records and stores audit trail information, which enables Kalshi to track a customer order from the time of receipt through filling and allocation. This includes order and trade data. Kalshi uses this data to detect, investigate, and prevent customer and market abuses.

Kalshi's Compliance Department investigates unusual trading activity or any other activity that the Compliance Department has reasonable cause to believe could constitute a violation of Kalshi's rules. Whenever Kalshi suspends, expels, fines or otherwise disciplines or denies a user access to the Platform, Kalshi makes disclosures to the CFTC.
CFTC DCM Core Principle 12: Protection of Markets and Market Participants
DCMs are required to establish and enforce rules to protect markets and market participants from abusive practices and to promote fair and equitable trading.
Kalshi currently has in place an AML/KYC Program to verify the identity of each applicant before that applicant can become a member and make a deposit to the Exchange.

Kalshi also prohibits:
  • Wash trades
  • Trades by persons with "insider" information about an event underlying its contracts or the ability to influence the outcome of an event underlying its contracts
  • Spoofing
  • Front-running
  • Non-competitive trading

Kalshi has market surveillance and compliance programs implemented to prevent prohibited conduct and ensure that the market facilitates fair and equitable trading of listed contracts.
CFTC DCM Core Principle 21: Financial Resources
DCMs are required to have adequate financial, operational, and managerial resources to discharge each responsibility of the DCM.

Specifically, DCMs are required to have financial resources exceeding the total amount of the operating costs of the DCM for a 1-year period, calculated on a rolling basis.
Kalshi files quarterly reports to the CFTC regarding its financial resources and demonstrates how it complies with the Core Principle and CFTC regulations.

As part of these regular disclosures, Kalshi provides the CFTC with information about its calculation methodology, its valuation and liquidity determinations with respect to its financial resources, and all other information and documentation requested by the CFTC and its staff.