CFTC Scrutinizes Kalshi Mention Markets as Sports Word Bets Disappear

According to an NPR report citing two sources with direct knowledge of the investigation, the Commodity Futures Trading Commission is investigating prediction-market contracts on whether certain words or phrases will be uttered.

The so-called “mention markets” are being scrutinized over speculation that their outcomes may be too easy to manipulate. Kalshi, however, took down its markets on sports mentions on the platform “until further notice”, NPR reported.

Kalshi and the CFTC did not comment to NPR, and at the time, there was no public enforcement action or investigation into the contracts by the CFTC.

Mention markets allow traders to speculate on whether a person will say a specific word or phrase, such as “MVP” for sports contracts and “ankle” and “redshirt”.