Prediction market Kalshi reached $1bn in trading volume during Super Bowl

Core Insights - Kalshi achieved a record trading volume of over $1 billion on Super Bowl Sunday, marking a 2,700% increase year over year [3][4] - The platform's popularity surged with over $100 million in bets on Bad Bunny's opening song and $45 million on the artists performing with him [3] - Kalshi's CEO highlighted the company's unique model where it benefits when customers win, differentiating it from traditional sportsbooks [5] Company Performance - Kalshi's trading volume during the Super Bowl significantly outperformed last year's total of $27 million [3] - The platform experienced delays in processing deposits due to high traffic, but assured users that their funds were safe [5] Industry Context - Prediction markets like Kalshi allow users to trade on various outcomes, distinguishing themselves from traditional gambling by operating under the oversight of the Commodity Futures Trading Commission [4] - The rise in popularity of prediction markets extends beyond sports, with applications in events like the Grammys and Oscars [6] Regulatory and Operational Challenges - Concerns about market manipulation and insider trading have been raised, prompting Kalshi to enhance its surveillance and enforcement efforts [7] - The company has conducted over 200 investigations and referred several cases to law enforcement in response to these concerns [7]