Young adults under 21 traded $5 billion on Kalshi this year, amid prediction market frenzy | CNN Business

Young adults between 18 and 21, who are legally barred from most gambling in the US, have traded an estimated $5.4 billion so far this year on the Kalshi prediction market, according to a new CNN analysis. On prediction sites, which have exploded in popularity this year, users can wager on everything from sports to elections, culture and the weather. Because prediction sites are federally regulated as financial markets, they’re available to anyone 18 and over, unlike most state-regulated casinos and sportsbooks, which are 21+. But lawmakers, consumer advocates and addiction experts increasingly see this as a loophole that could endanger younger adults’ personal finances and mental health, CNN previously reported. Sports and parlays (an all-or nothing bundle of bets, which are popular with sports) make up about 80% of Kalshi’s overall volume. The CNN analysis found that Kalshi users between 18 and 21 have traded an estimated $3.9 billion in those categories this year – and that’s expected to rise. “Normally you’d have a big summer lull, but the World Cup changed that completely,” said Jonathan Michaels, who runs a gaming industry consulting firm. “Prediction market