Kalshi is adding athlete harassment to the conduct its exchange can punish, an acknowledgment that the costs of sports wagering extend beyond the people placing bets. Sportico’s Dan Bernstein reports that a filing dated October 13 gives the prediction-market operator authority to deactivate accounts, refer cases to police and impose financial penalties for trading-related abuse.
The rule covers intentional or reckless conduct reasonably likely to cause emotional distress, including threats, bullying and intimidation connected to trading activity. A Kalshi official told Sportico that financial penalties could include a flat fine, independent of the amount wagered. The report does not identify a fine schedule or describe penalties already imposed under the new provision.
Enforcement depends on connecting conduct outside the exchange to accounts inside it. Kalshi is partnering with Signify Group and IC360 on a “Bad Actor Program” intended to identify abusive social-media messages and match the people sending them with Kalshi users. DraftKings and Fanatics have also joined the program. Kalshi says it targets abusive, threatening and potentially criminal behavior, not legitimate criticism of sports performance. The arrangement’s financial terms were not disclosed.
The underlying conflict is visible in tennis. After Kalshi’s U.S. Open sponsorship was announced, Jessica Pegula pointed out that tournaments can profit from betting sponsorships while players receive the resulting hostility: “We get a lot of hate on social media, so it’s tough when you see that, and then [those companies] are a big sponsor behind the court.” Athletes bear an emotional and safety cost even when they have not chosen the commercial relationship.
The new rule provides a possible consequence for abusive bettors; it is not evidence that harassment has declined. Its practical value will depend on identifying account holders, investigating reports and applying sanctions. The distinction between a state-regulated sportsbook and a federally regulated prediction market does not remove this shared problem: people whose performances settle wagers can become targets for the people losing money on them.