Kalshi is introducing new safeguards for traders aged 18 to 20 as the prediction market platform faces growing scrutiny over the risks of excessive trading and potential addiction. The measures are designed to encourage more responsible participation ahead of the US midterm elections, when interest in markets tied to political and other real-world events can intensify.
Under the new rules, eligible young-adult traders will begin with a monthly deposit limit of $2,500. Kalshi will also introduce alerts for new users whose account balances exceed $1,000 and who commit more than 25% of their available funds to a single trade. The notifications are intended to encourage users to spread their exposure rather than concentrate a large portion of their money on one outcome.
The changes reflect a broader challenge facing prediction market platforms. Services such as Kalshi and Polymarket allow users to trade contracts linked to outcomes ranging from sports and elections to geopolitical and military developments. Supporters view these markets as a way to express expectations about future events, while critics argue that their wagering-like structure can encourage gambling behavior and expose users to addiction-related risks.
Kalshi co-founder and Chief Operating Officer Luana Lopes Lara said the platform is restricted to adults aged 18 and over, but emphasized that new traders need additional education and protections. The company is also partnering with Parent ProTech and ConnectSafely to develop guides for parents, offering information about prediction markets and the risks associated with participation.
The new measures could help Kalshi address concerns about how inexperienced users manage risk, particularly when trading contracts tied to high-profile events. However, their effectiveness will depend on whether deposit limits, spending alerts and educational resources meaningfully change user behavior. As prediction markets attract greater attention, the balance between expanding access and preventing harmful trading habits is likely to remain a central issue for the industry.
