PR debacle
Kalshi has responded after a new Wall Street research report claimed daily users of the prediction market platform appear “to lose money faster” than those using traditional sportsbooks.
Kalshi’s response came via its Head of Communications Elisabeth Diana who claimed that the analysis was tied to an “extortion attempt” by the data firm supplying the stats for the Wall Street report:
Kalshi called the Juice Reel data cited by Citizens bank analyst Jordan Bender as “flat-out wrong” while questioning the motives behind the report.
Bender’s report stated the lower 25% of PM bettors lost about 28 cents of every $1 wagered over their first 90 days compared to the same traditional sportsbook bettors who lost only 11 cents per $1 wagered.
CEO refutes Kalshi claims
Juice Reel CEO Ricky Gold slammed Diana’s extortion claims as “complete fabrication” while firing off some accusations of his own, before Kashi did a U-turn and stated: “After further review, we don’t believe the intention was extortion.”
Diana’s original extortion accusation claimed Gold offered to “defuse the situation” caused by Bender’s report in Bloomberg “in exchange for an investment meeting” with Kalshi CEO Tarek Mansour.
pressuring us to tell Bloomberg that our data is inaccurate”
Gold stated Kalshi had repeatedly contacted him after the report’s publication release. “They called and messaged us, pressuring us to tell Bloomberg that our data is inaccurate.”
Juice Reel’s data also compared median users and revealed the average user’s PM wallet lost around 7% of the money wagered within three months compared to just 1% lost by those using traditional sports gambling platforms.
Bender’s report suggests successful firms and professional traders “often profit at the expense of casual users.”
Holding firm
Despite walking back its extortion claim, Kalshi reportedly continued to challenge the conclusions of Bender’s article and denied trying to strong-arm the Juice Reel CEO to change his data.
Kalshi’s Head of Federal Government John Bivona, meanwhile, said the New York-based firm had built a platform without a system, algorithm, or house. “People decide the price and compete fairly against each other.”
