Kalshi App Gains Ground on Sportsbooks Before Super Bowl

A newcomer to the sports betting scene has jumped into the limelight right before the year’s biggest game. Kalshi, a small-time player next to big-name sportsbooks, saw a big jump in people downloading its mobile app in January. It was ahead of well-known brands like DraftKings and FanDuel as the Super Bowl got closer.

Kalshi Outpaces Sportsbook Giants in January Download Race

Based on numbers from Apptopia, an app analytics company, Kalshi’s app saw over 3 million downloads in the US last month. This number tops the combined January downloads of DraftKings and FanDuel, reaching a growth level neither traditional sportsbook has ever hit in one month. Just a few months before, when the NFL season kicked off in August, Kalshi’s downloads were much lower than those of its rivals, reported Bloomberg.

The surge’s timing stands out. Sports betting interest hits its peak during football season, with the Super Bowl as the main event. Industry projections indicate that traditional sportsbooks will handle a record $1.76 billion in bets on this year’s championship game between the Seattle Seahawks and the New England Patriots. Prediction markets, though, are growing even quicker. H2 Gambling Capital experts expect platforms like Kalshi to draw about $630 million in Super Bowl-related trading, making up most of the year-over-year growth linked to the event.

Kalshi’s Exchange-Style Betting Tests the Boundaries of US Gambling Rules

Kalshi’s quick rise has a strong connection to its regulatory position. Unlike sportsbooks, which must deal with different gambling laws in each state, Kalshi works under federal supervision from the Commodity Futures Trading Commission (CFTC). Its contracts are seen as financial tools instead of bets, letting the platform offer sports-related markets across the country, even in states where you cannot bet on sports on your phone. However, Apptopia data shows the app is popular in all states, which means users pick it because they like how it works, not just to get around local rules.

The platform works differently from sportsbooks. Rather than betting against users, Kalshi pairs them up and takes a cut of each transaction. This marketplace approach has allowed it to expand into non-sports areas like elections and economic data, though sports markets have seen the most action since football kicked off.

The company’s growth has hit some snags. A number of state regulators have tried to limit Kalshi’s sports offerings, with legal battles still going on in places like Massachusetts. Meanwhile, the NFL has stopped prediction market firms from running ads during the Super Bowl, pointing to worries about fair play and partnership rules.Big betting companies are paying attention. DraftKings and FanDuel have rolled out their own apps for making predictions in some states, but so far, not many people have downloaded them.