Webull platform has partnered with prediction market Kalshi to offer event contracts to users directly on its platform. This development will allow Webull users to explore new forecasting opportunities in the coming weeks.
New Opportunities for Webull Users
Webull announced its partnership with prediction market Kalshi to offer event contracts to its users. Users will have access to a limited set of contracts, with plans to expand these offerings over time. Webull becomes the second broker to integrate such services despite US financial regulators' limitations on these contracts.
CFTC Scrutiny of Event Contracts
In January, the Commodity Futures Trading Commission (CFTC) announced its intention to probe event contracts related to the Super Bowl, planned by Crypto.com. An official investigation was launched on February 4th to evaluate these contracts' compliance with derivatives laws. Kalshi also announced a partnership with Robinhood to offer event contracts, which were temporarily suspended at CFTC's request.
Differences Between Traditional Bets and Prediction Markets
Although sports betting and event contracts share similarities, key differences exist between them. Traditional betting relies on bookkeepers to set odds, often favoring the bookmakers. In contrast, prediction markets rely on collective intelligence to reach consensus on events, offering a more organic approach to forecasting.
The partnership between Webull and Kalshi represents a significant advancement in forecasting capabilities for the platform's users. However, regulators are closely monitoring such developments to ensure compliance with legal standards.
