Cardi B’s involvement in Bad Bunny’s Super Bowl halftime show on Sunday has stirred controversy in prediction markets.
According to an AP News report, a trader filed a complaint with the Commodity Futures Trading Commission (CFTC) on Monday against Kalshi over the handling of the event.
Cardi B Performance
The dispute arose from uncertainty about whether Cardi B’s presence constituted a “performance.” Kalshi settled the market at $0.74 for “No” holders and $0.26 for Yes holders, returning all funds to users.
Meanwhile, Polymarket resolved its contract as if Cardi B had performed, but this decision is under dispute, with a final ruling expected on Wednesday.
Trader Wants $3,700
The complaint, initially reported by the Event Horizon newsletter, claims Kalshi violated the Commodity Exchange Act.
The trader, a Yes holder, is seeking $3,700. The Super Bowl marked a significant period for prediction markets, with Kalshi reporting over $1 billion in trading volume, a 2,700% increase from the previous year.
Kalshi co-founder Luana Lopes Lara acknowledged the platform faced deposit issues due to high traffic, which exceeded expectations. She confirmed that processing fees were reimbursed, and credits were added for users who experienced delays.
Prediction Markets And Regulations
The controversy surrounding Cardi B’s Super Bowl appearance highlights ongoing challenges in the rapidly growing prediction markets industry. Platforms like Kalshi and Polymarket allow users to wager on various topics, from political events to entertainment, raising ethical concerns and fears of insider trading.
Lawmakers have expressed mixed feelings about these platforms. Rep. Alexandria Ocasio-Cortez (D-N.Y.) voiced concerns about their potential misuse for personal gain. Meanwhile, Tarek Mansour, CEO of Kalshi, has supported legislation to ban insider trading in prediction markets, emphasizing the need for transparency and integrity.
The dispute over Cardi B’s performance is not an isolated incident. Earlier this year, Polymarket faced backlash for refusing to settle bets on a U.S. operation in Venezuela, involving contracts worth over $10 million.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
Recent Comments