Smash Notes
Why Did Kalshi Reimburse More Than Two Million Dollars on the Iran Supreme Leader Contract?
Kalshi listed a contract on whether Iran's supreme leader would die or be removed from power, then had to backpedal and reimburse more than two million dollars to users. Kalshi is federally regulated and does not allow markets on war, terrorism, or assassination. The Maduro contract was listed for the same reason: a person can leave power in more than one way, and the departure had a clear economic impact, including the price of oil.
Kalshi let the market operate, and voids every trade if the outcome is an assassination or terrorism so nobody can profit from it. Luana Lopes Lara said Kalshi did not do a good enough job in the product explaining how voiding would work, and users got confused. After the Iran contract, Kalshi got more selective about what it lists.
Masters of Scale
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Kalshi vs. Everyone: Co-Founder Luana Lopes Lara on the lawsuits and the long game
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at 13:57
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·Transcript
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On this episode
- How Did Kalshi Move From a 2021 Launch and a Five Billion Valuation to 22 Billion After Four Regulated Years? Transcript
- Why Is New York Suing Kalshi for Thirty Six Billion Dollars in Kalshi's Home State? Transcript
- Why Does Kalshi Grow a Lot by Running a Federally Regulated Exchange Rather Than a Sports Book? Transcript
- Why Did Draftkings Report No Cannibalization Between Sports Betting and Prediction Markets? Transcript
- Why Did Kalshi Reimburse More Than Two Million Dollars on the Iran Supreme Leader Contract? Transcript
- Why Do About Seventy Eight Percent of Kalshi Visitors Look at the Data Without Placing a Trade? Transcript