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Launch HN: Kalshi (YC W19) – A regulated exchange for trading on events

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Re: Launch HN: Kalshi (YC W19) – A regulated exchange for trading on events

#181

Earlier quoted context omitted.

It's a prediction market in some ways... though prediction markets have been historically associated with unregulated venues etc. We're fully regulated by the federal government as a derivatives exchange, and that's a big difference in an of itself (it took us years to figure out the right model to offer derivatives dynamically, with events as underlying). Regulation allows us to plug into the financial ecosystem, an…

So it's a prediction market but you aren't legally allowed to be called a prediction market. In much the same way that Pyramid Schemes can operate as "Multi-Level Marketing", eventually the regulators will catch on and shut things down.

We are perfectly allowed to be called a prediction market. That is not what I was saying in my text.

We are fully regulated by the CFTC. Our ethos has been do regulation from day 1 and we spent 3 years getting regulated before we launched a single product. Regulators are already caught up and are working with us constructively to expand this marketplace and asset class.

Re: Launch HN: Kalshi (YC W19) – A regulated exchange for trading on events

#184

Earlier quoted context omitted.

There is no real market participant who could benefit from hedging in sports betting. Only sports betting operators themselves, and the teams (who are legally forbidden from participating in betting). But in a commodity market there are real participants whose primary business model is production, being able to hedge against future price swings provides real value to these businesses.

> There is no real market participant who could benefit from hedging in sports betting. The entire local economy surrounding sports venues. For a small bar or restaurant near a stadium, the difference between a good season and a bad season can be huge. This is magnified to the nth degree in places like Green Bay, WI where renting out one's home for a single at home post-season game can easily net a family several mon…

Sure, but this is a way that sports betting is less like gambling and more like legitimate risk management for some businesses.
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