A 35-year-old financial services worker from Pennsylvania developed a severe gambling addiction during the pandemic that led to approximately $75,000 in debt from credit cards, personal loans, and online sportsbooks. He filed for bankruptcy in late 2023 and obtained debt relief from most creditors. He also self-excluded from major sportsbooks DraftKings and FanDuel in an attempt to address his gambling disorder.
Approximately two years after his bankruptcy, Thomas encountered an advertisement for Kalshi, a prediction market platform, on Instagram offering a $20 cash bonus for initial spending. Despite his previous struggles and self-exclusion commitments, he engaged with the platform. What began as a modest $10 wager rapidly escalated, with his losses exceeding $25,000 before he recognized the severity of the situation.
Unlike traditional sportsbooks, prediction market platforms such as Kalshi and Polymarket operate under a different business model and have not sought state regulatory approval, meaning they do not implement the same consumer protections mandated in regulated gambling jurisdictions. Mental health professionals report increasing numbers of clients with gambling addictions who have turned to prediction markets after self-excluding from regulated sportsbooks. Counselors attribute this trend partly to aggressive advertising campaigns by these platforms across multiple media channels, including in states where online sports gambling remains illegal.
Thomas eventually requested account closure from Kalshi through the app’s chat feature, explicitly citing his gambling addiction and prior self-exclusion from regulated platforms. The company initially offered alternative risk-management options rather than permanent closure. After submitting three separate email requests, Kalshi ultimately restricted his account access. Thomas now resides with his mother and grandmother and has requested family loans to cover basic expenses, expressing remorse about spending his savings on the platform.
Clinical psychologists and gambling counselors characterize Thomas’s experience as increasingly representative of a broader concern regarding prediction markets’ accessibility and marketing strategies. Experts note that the absence of state-level oversight and the prevalence of targeted advertising create particular risks for vulnerable populations, including young adults and individuals with documented gambling disorders.
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