They also place their own bets within their own market. They don't just make money on trading fees.
replySounds like a glaringly obvious conflict of interest?
replyBe careful, the market makers always win. If you go against them, you make yourself a target.
replyOf course it is, people will do whatever they can get away with.
replyA different entity provides liquidity.
replyThere’s no house like in sportsbooks.
And there is no house in pool betting, poker or backgammon either. We still count all of them including betting exchanges (what has now been rebranded as prediction markets) are still normally regulated as gambling.
replyNot in the US.
replyKalshi does not trade against its users.
replyThat's their PR department talking.
replyhttps://straighttothepoint.substack.com/p/you-cant-have-it-b...
https://www.sportico.com/business/sports-betting/2025/kalshi...
Kalshi definitely does this
replyThey just don't make any money off it.
What about the special partners that put up bets that are basically just methods to launder the fact that there's a house?
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