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points by freecodeio 5 days ago | 0 comments
the equivalency is both go bankrupt if people win as much as the house wants you to think they win
[–] ToValueFunfetti 5 days ago
Prediction markets' business model is taking transaction fees from contracts between independent counterparties. Kalshi won't go bankrupt no matter how much you make there (though 'people' collectively will make negative [fees + taxes]).
[–] cowlevel 4 days ago
Kalshi does make both sides feel like they'll probably win, and if that actually happened, Kalshi would definitely lose money.
[–] monknomo 5 days ago
these fees are a bog standard casino rake, a vig. this is just fancy window dressing on a bookie.