TLDR A self-excluded Pennsylvania bettor lost more than $25,000 trading on Kalshi. He had gone bankrupt in 2023 after building up about $75,000 in gambling debt. Most of his losses came from short-term bitcoin price contracts, some lasting only 15 minutes. Kalshi is federally regulated, so state self-exclusion programs do not apply to it. Kalshi says it is a financial exchange, not a sportsbook, and blocked his account after repeated requests.
A Pennsylvania man who had banned himself from gambling sites lost more than $25,000 trading on Kalshi. His case is raising new questions about prediction markets and gambling harm.
The man, who goes by his middle name, Thomas, shared his story with NPR. He said he sometimes traded for up to 18 hours a day.
From Sportsbooks to Bitcoin Contracts
Thomas first developed a gambling problem during the pandemic. He placed bets on DraftKings and FanDuel.
His gambling left him owing about $75,000. More than $50,000 of that debt was tied to online sportsbooks.
Prediction markets are such a regulatory disaster that even the gambling regulators are begging the Supreme Court to sort it out.
Nobody – not the states, not the CFTC, not the courts – can agree on what #Kalshi is even selling.
— AMBCrypto (@CryptoAmb) October 4, 2026
He went bankrupt in 2023. He then signed up for Pennsylvania’s self-exclusion program, which barred him from casinos and licensed online betting services in the state.
About two years after his bankruptcy, he saw an Instagram ad for Kalshi. The promotion offered a $20 bonus to users who spent $10 on the platform.
His activity grew quickly. His main focus became bitcoin contracts, where traders bet on whether the cryptocurrency will rise above or fall below set price levels.
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