Prediction markets Kalshi and Polymarket are actively targeting university students through clubs and student influencers, attempting to profit from rumors and insider information.
The Wall Street Journal has pointed out the dangers that Kalshi and Polymarket, platforms that allow users to place bets on news, sports, and other topics, pose to college students.
'Is This Insider Information?' The Prediction Market Bets Driving a Campus Frenzy - WSJ
Kalshi's and Polymarket's CEOs are fierce rivals : NPR
https://www.npr.org/2026/03/06/nx-s1-5735893/iran-war-kalshi-polymarket-feud
Kalshi and Polymarket are platforms that turn almost any event, from world-changing events to everyday occurrences, into online betting opportunities. For example, in November 2025, bets were made on 'when Venezuelan President Maduro will step down,' and in February 2026, bets were made on the date of US and Israeli attacks on Iran and when Iran's Supreme Leader Khamenei would step down, resulting in transactions totaling $529 million (approximately 84.5 billion yen).
Because real money is wagered, many users become obsessed with winning and resort to reckless actions. There have been instances of users threatening journalists who wrote the news stories that formed the basis of their bets, and others using confidential company information. These sites are considered online gambling, and some countries, such as France, have blocked access. In the United States, Polymarket is blocked from domestic access due to past lawsuits , but users are participating using VPNs.
The Wall Street Journal warned that these sites are spreading even to college students who are not careful about how they spend their money. It pointed out that not only are students starting to gamble on their own, but companies are also using various tactics to lure students in.
For example, there have been cases where Polymarket has provided funding to
Many US states regulate sports betting, such as 'DraftKings,' prohibiting betting by those under 21. However, Polymarket and Kalshi are regulated by the Commodity Futures Trading Commission as financial derivative contracts, allowing bets from age 18. This creates an incentive for both companies to attract young people earlier than their competitors.
A university student who collaborated with Kalshi told the Wall Street Journal that Kalshi instructed him to target students because they tend to spend money impulsively, but this has been denied by a Kalshi spokesperson. The spokesperson stated that Kalshi is fairer and more transparent than casinos or sports betting sites, that users aged 18 to 21 account for only 3% of the total transaction volume, and that the average user age is 33, adding that they do not specifically target students.
Kalshi and Polymarket are very similar services, but Kalshi is under the supervision of the Commodity Futures Trading Commission, while Polymarket blocked access from the United States as a condition of a settlement in a lawsuit with the Commission. Kalshi CEO Tarek Mansour dislikes being associated with Polymarket and considers Polymarket to be an 'illegal and dubious foreign exchange broker.'
A University of Miami student told the Wall Street Journal that he placed a bet on whether Evan Whitesell, the stepson of Amazon founder Jeff Bezos, would appear at the next Super Bowl , based on a rumor he heard from Whitesell, who was a student at Miami at the time. The rumor proved correct, but the student said, 'Everyone is wondering if this is insider trading, or if we're doing something we shouldn't be doing.'
The National Collegiate Athletic Association is sounding the alarm about betting on college games as students are losing their winnings due to being misled by rumors and other factors. In connection with this, a group of senators has introduced legislation to ban services like Polymarket from handling sports betting and casino-style gambling.
A bipartisan bill to ban sports betting in prediction markets has emerged - GIGAZINE
Clint Hangebrook, head of risk management for the National Collegiate Athletic Association, stated, 'We strongly oppose the current form of prediction markets for college sports.'
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