Prediction market Kalshi expands safeguards for young traders

Oct 27 (Reuters) - Kalshi is strengthening guardrail for young-adult traders on its prediction market platform, ‌as it seeks to curb addiction and ‌promote responsible trading ahead of US midterm elections.

• The safeguards will ​be applicable for traders aged between 18 and 20 years, Kalshi said on Tuesday

• The category of traders will start with a $2,500 monthly deposit limit, creating ‌a prevention to massive ⁠losses that can be incurred on the platform

• Kalshi will alert new traders ⁠with balances exceeding $1,000 who allocate more than 25% of their funds to a single trade, encouraging them ​to diversify

• ​While prediction market platforms ​such as Kalshi and ‌Polymarket have gained popularity by enabling users to wager on outcomes ranging from sports and elections to military operations, they have drawn criticism from those who argue the platforms resemble gambling and carry addiction ‌risk

• "Like the stock exchange, Kalshi ​is available only to traders ​18 and older," Luana ​Lopes Lara, chief operating officer and ‌co-founder of Kalshi, said, adding ​that new ​traders need more education and safeguards

• The company also announced new partnerships with parent and youth ​safety organizations — Parent ‌ProTech and ConnectSafely — to publish parent's guides ​to prediction markets

(Reporting by Pritam Biswas in Bengaluru; ​Editing by Shilpi Majumdar)