Kalshi announced last month that a user who traded about $4,000 on streaming markets related to MrBeast videos with “near-perfect” success turned out to be an employee of Beast Industries who “likely had access to material non-public information.” Kalshi suspended the editor from its platform for two years, fined him $20,000 and alerted federal regulators.
Prediction markets are currently regulated by the federal Commodity Futures Trading Commission and not state gambling authorities. Critics have said prediction markets and regulators need to do more to prevent instances of insider trading.
“You could be a third-party cameraman on set and know what the first song in the rehearsal is for a singer. You can be the person reviewing a script and knowing what the end result is,” Housenbold said. “There’s so much information out there and it’s asymmetric and people are taking advantage of that.”
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