Updated
Updated · CNN · Aug 28
Young Adults Traded $5.4 Billion on Kalshi as 18+ Rules Fuel Gambling Loophole Debate
Updated
Updated · CNN · Aug 28

Young Adults Traded $5.4 Billion on Kalshi as 18+ Rules Fuel Gambling Loophole Debate

3 articles · Updated · CNN · Aug 28

Summary

  • $5.4 billion in Kalshi trades this year came from users aged 18 to 21, CNN estimated, even though most US casinos and sportsbooks bar that age group.
  • Federal CFTC rules let prediction markets accept users 18 and older as financial exchanges, creating a path around state gambling-age limits that critics say exposes younger adults to addiction and financial harm.
  • Sports and parlays drove about $3.9 billion of that 18-to-21 activity and could climb further with football season after the World Cup disrupted the usual summer slowdown.
  • Kalshi, which has logged more than $173 billion in total volume and roughly 90% of the US prediction market, says it uses deposit limits and risk warnings and has donated $2 million to problem-gambling efforts.
  • The age policy is now part of a wider legal and regulatory fight backed by 44 state attorneys general, tribes and casinos, while some rivals including Fanatics and Novig have chosen 21+ access.

Insights

Could a $36 billion lawsuit destroy the loophole allowing 18-year-olds to place sports bets disguised as financial trades?
With billions at stake, will courts rule that predicting a football game is a financial trade or an illegal bet?
Are regulators accidentally fueling a college gambling crisis by classifying sports parlays as legitimate financial investments?