Kalshi Problem Gambling: ‘If They Lose Their Shirt, That’s On Them’

The prediction gambling platform Kalshi apparently isn’t too concerned about problem gambling.

At a conference of state lawmakers in Louisville in July 2025, a lawyer for the platform reportedly was dismissive of the concept of “responsible gambling.”

According to SBC Americas reporting from the event, the Kalshi lawyer said regarding regulation and problem gambling: “People are adults, and they’re allowed to spend their money however they want, and if they lose their shirt, that’s on them.”

Kalshi allows gambling on sports, politics and other current events. The platform, regulated by the federal government and advised by Donald Trump Jr., debuted a sports gambling product in early 2025.

The company, valued at $2 billion in June 2025, calls itself a trading platform—not a traditional online sportsbook. The Kalshi lawyer said that people can also lose “their shirts” on things like crude oil futures, an activity that involves virtually no consumer protections related to addiction.

The comments from the Kalshi representative appear to contradict what CEO Tarek Mansour said in a March 2025 announcement of some consumer protection tools.

Still, it’s not the only time Kalshi raised eyebrows regarding problem gambling. In September 2025, the company announced a controversial plan to hire influencers on college campuses.

Kalshi Problem Gambling Tools

Despite the “if they lose their shirt” statement, Kalshi does have a “responsible risk management” hub on its website.

“At Kalshi, the safety of our users is our utmost priority,” the company’s website states. 

“We equip every trader with accessible risk management tools that can be enabled at their discretion… There are three different responsible risk management actions that can be taken: trading break, voluntary opt-out and a personalized funding cap.”

Self-exclusion, deposit and time limits are available at licensed online sportsbooks like DraftKings and FanDuel.

For online sportsbooks, state gambling regulators enforce adherence to responsible gambling practices. Fines for RG failures are often small but vary by state.

Does the Commodity Futures Trading Commission, which regulates Kalshi, have the authority or resources to monitor the functionality of problem gambling tools?

Kalshi’s RG Position Raises Eyebrows

Some states are challenging the legality of Kalshi’s sports product through cease and desist letters and lawsuits.

In a separate panel at the National Council of Legislators from Gaming States conference, a Massachusetts gambling regulator took issue with the Kalshi comments.

Jordan Maynard, chair of the MA Gaming Commission, ridiculed the company’s apparent dismissiveness of responsible gambling.

“I heard someone on a panel the other day say ‘If someone loses their shirt, who cares?’ We f–king care,” Maynard reportedly said.

The room “broke out into applause,” reported Jessica Welman, managing editor of SBC Media.

At a July 2025 meeting of the MGC, Commissioner Paul Brodeur revisited the topic by stating: 

“Mr. Chairman [Maynard], you were at a conference in Louisville where someone who I believe has represented the prediction markets, essentially represented to the professionals in attendance that ‘We don’t care if they lose their shirts’ or words to that effect. I know how this commission feels about that. The step that Congress and the President are taking to shift to a market that may have that as their operating principle, is not a good development in the world of gaming. It’s something we will have to at least keep an eye on.”

Maynard referenced his reported comments from the conference, reiterating that Massachusetts regulators “really care about responsible gaming.”

Just about two months later in September 2025, Massachusetts sued Kalshi over problem gambling.

Kalshi’s Advertising Messaging

In June 2025, Kalshi ran a billboard ad in Oklahoma for the then ongoing NBA Finals. It was one of many billboard ads the company has bought in recent months.

The ad included language that warned: “Trading involves significant risk and is not appropriate for everyone.”

The warning message also told gamblers to “carefully consider if it’s appropriate for you in light of your personal financial circumstances.”

“As a CFTC-regulated financial exchange, Kalshi has different requirements compared to gambling companies for what language needs to be included on billboards,” a spokesperson told Gambling Harm. “We have included the proper disclaimers in our billboard.”

The small print on the billboard was a warning to trade responsibly.

Still, the ad lacked a problem gambling hotline number or resource for people experiencing issues. A hallmark of “responsible gambling” is the conspicuous display of a resource for help.

Kalshi’s Problem Gambling Philosophy

It’s clear Kalshi knows that consumer protection related to gambling addiction is important for its public image.

For example, conservative commentator Tucker Carlson earlier this month blasted online sports betting as “predatory.” Carlson, who didn’t mention Kalshi problem gambling, was referring to apps like DraftKings.

Nonetheless, there’s growing criticism of online sports gambling in any form it may take.

Betting addiction statistics show that more than half of online sports bettors chase losses. There is no indication that sports betting through Kalshi would be any less addictive and potentially destructive.

The “if they lose their shirt” comment from Kalshi should be taken in context of the setting. It was made at a conference of state legislators. The company doesn’t want state regulation of its product.

However, it’s concerning that Kalshi undermined its own stated “commitment” to customer safety. What does the company really think of users who become addicted?

There’s no government oversight regarding whether its RG tools, which are a form of self-policing, work as intended.

Critics of all forms of online gambling are correct to point out that state-sanctioned online sports betting has major flaws. Addiction rates are on the rise, and horrifying stories of addiction from state-regulated apps are becoming more common. Proponents of regulated sports betting often highlight cases of offshore sportsbooks preying on consumers.

Recent slaps on the wrist for offshore sportsbooks in Curaçao underscore the danger of those platforms.

In an attempt to better address problem gambling, the SAFE Bet Act, pending legislation in Congress, seeks to establish nationwide regulation of sports betting.

Perhaps that bill is becoming more necessary with each passing month and should also address sports “trading.”

Image by StockSnap from Pixabay