Prediction market platform Kalshi is rolling out new safeguards to prevent minors from trading as political and regulatory pressure on the fast-growing industry intensifies.
Prediction markets such as Kalshi and rival platform Polymarket allow users to wager on outcomes ranging from elections to sports and weather, drawing criticism from lawmakers who argue the products closely resemble gambling.
Under the new measures, minors will be barred from trading entirely, though the company said underage users will still be able to observe market data and “build a critical lens of the news.”
The platform is also strengthening account security, requiring Face ID by default where available, along with selfie verification and two-factor authentication.
Kalshi said it is also introducing tools to detect unauthorized account access, “to ensure no one — bad actors, minors, etc. — uses another person’s account against our policies.”
The company is also expanding transparency features. “We’re introducing a social feature called Inner Circle, where users can choose to give friends and family access to view their trading activity,” Kalshi said, adding that approved viewers will receive real-time alerts tied to account activity.
Additional safeguards are aimed at curbing excessive trading. “Traders will get deposit limit recommendations based on their activity. We look for signs of unhealthy trading and proactively educate traders on our controls, plus suggest personalized deposit limits for them,” the company said. “In some cases, we ask for proof of funds. … There is more work to do.”
The changes are a direct response to a recent bipartisan push from lawmakers to regulate the industry. Sens. Kirsten Gillibrand (D-NY) and Dave McCormick (R-PA) last week introduced the Prediction Market Act of 2026, which would impose stricter consumer protections, ban insider trading, and require age verification for users.
“Last week, Senators Gillibrand and McCormick introduced a bipartisan bill to promote customer protection and market integrity in prediction markets,” the company said. “Today, we’re announcing that Kalshi is proactively implementing measures outlined in the bill, and more.”
Gillibrand framed the legislation as a crackdown on abuse of privileged information: “Americans deserve financial markets that are fair, transparent, and not tilted in favor of those with privileged access.”
The push for tighter rules comes amid mounting controversy surrounding prediction markets. The National Basketball Association and PGA Tour have called for raising the minimum trading age to 21, while lawmakers across both parties have raised concerns about insider trading and consumer risk.
Recent incidents have intensified scrutiny. A U.S. Army soldier was charged with using classified information to profit from the capture of then-Venezuelan president Nicolas Maduro.
SENATORS BAN THEMSELVES FROM GAMBLING ON PREDICTION MARKETS
The Senate also passed a resolution banning members and staff from trading on prediction markets altogether on Thursday.
At the same time, legal battles are unfolding across several states over whether prediction markets should be regulated as financial exchanges or treated as gambling platforms, with federal regulators and states clashing over jurisdiction.