Kalshi anti-harassment rule adds fines for abusive traders

Kalshi has told the Commodity Futures Trading Commission that it will amend its rulebook to bar members from harassing third parties in connection with trading, with violations open to financial penalties. The Kalshi anti-harassment rule takes effect on Oct. 27, according to the exchange's filing dated Oct. 13. It arrives alongside a new partnership with Signify Group to track online abuse aimed at athletes and coaches.

What happened

The CFTC filing amends Rule 5.17 and says violations may lead to independent financial penalties under Chapter 9 of the rulebook. "No person shall intentionally or recklessly engage in conduct reasonably likely to cause emotional distress to a third-party in connection with trading activity," the rule states, according to Sportico. A Kalshi official told Sportico the penalty could be a flat fine regardless of how much a person wagered.

Under the Signify partnership, the firm's Threat Matrix service will monitor public social media for abuse targeting athletes, coaches and staff across the NFL, NBA, MLB, NHL and ATP Tour. It detects harmful content across 32 categories in more than 100 languages, with analysts assessing severity and escalating serious cases.

Kalshi is also joining the Bad Actor Program run by Signify and Integrity Compliance 360, which matches verified abusers to accounts on participating platforms. Penalties can go up to permanent account closure, and evidence can be referred to law enforcement or shared with sports organizations.

The measures build on existing integrity controls, including bans on athletes, coaches and others with relevant inside information trading their own sports markets, Kalshi said. Sportico noted that IC360 has also partnered with Kalshi and other prediction market companies on a nationwide self-exclusion program.

Why it matters

The Kalshi anti-harassment rule turns a terms-of-service policy into an exchange rule with money attached, which gives Kalshi firmer grounds to discipline users. That matters as prediction markets push deeper into sports, where players say abuse from bettors has become routine.

Tennis player Jessica Pegula criticized Kalshi's U.S. Open sponsorship this summer, telling reporters that players "get a lot of hate on social media" from bettors, Sportico reported. Rivals have moved too, with DraftKings joining the Bad Actor Program last month and Fanatics in June.

Signify chief executive Jonathan Hirshler framed the deterrent bluntly. Anyone who thinks a losing position entitles them to threaten an athlete "should know that they can be identified, that their account can be closed," he said in Kalshi's announcement.

Kalshi said the effort targets abusive, threatening and potentially criminal behavior rather than legitimate criticism of sports performance. The rule also strengthens its case with regulators that it can police its users as closely as state-licensed sportsbooks.

Leagues have been pushing in the same direction. Sportico said major U.S. sports leagues have written to state regulators asking for abusive bettors to receive permanent bans and are planning public service announcements in the coming months.

What's next

The rule takes effect on Oct. 27, and the first public enforcement action will show how large the fines are and how often Kalshi uses them. Leagues are pressing too, and on Tuesday the NBA and WNBA launched a campaign with the National Council on Problem Gambling about the risks of sports betting and prediction markets.

Kalshi faces scrutiny on several fronts, from its CEO's comments on state oversight to a probe into bets tied to a press secretary. The Kalshi anti-harassment rule is a bid to show it can police its own users before regulators step in.