Markets Prediction
Get Promotion Codes
Jump toBest PlatformsLive Odds

Self-Exclusion

Self-exclusion is a voluntary program that allows prediction market users to ban themselves from trading across one or more platforms, typically to address problem gambling concerns. Once enrolled, participating exchanges are required to block the user's account and reject new registrations for the duration of the exclusion period.

Updated June 24, 2026Regulation & Risk
TL;DR
Self-exclusion lets users voluntarily lock themselves out of prediction market trading to protect against compulsive behavior. Kalshi launched the first cross-platform self-exclusion program in the sector in April 2026.

Key Points

✓Kalshi became the first prediction market platform to join IC360's SelfExclude cross-platform self-exclusion program, with the partnership announced in April 2026.
✓SelfExclude encrypts and anonymizes user identity data so participating platforms can verify exclusion status without storing raw personal details.
✓Polymarket, Robinhood, and ProphetX were in the onboarding process to join SelfExclude as of mid-2026, with Kalshi as the sole active member at launch.
✓CFTC rules do not mandate self-exclusion programs for prediction market platforms, making Kalshi's adoption a voluntary responsible-gambling measure ahead of potential regulation.
✓Problem gambling organizations contend that prediction market interfaces resemble gambling products and that self-exclusion is an essential harm-reduction tool regardless of regulatory classification.

How Self-Exclusion Works on Prediction Markets

The SelfExclude program, operated by compliance firm IC360, functions as a shared registry. A user who wants to self-exclude first verifies their identity, which is then hashed and anonymized before being added to the registry. Participating platforms — currently led by Kalshi — check new account registrations and existing account activity against the registry. A match triggers an automatic block, preventing the user from placing new trades or making new deposits. Importantly, platforms never see the underlying personal data, only a yes/no match signal. This privacy-preserving architecture addresses a barrier to adoption: exchanges were reluctant to maintain sensitive personal exclusion records. The cross-platform scope is critical because traditional gambling self-exclusion programs are state-specific; a person excluded in one state could previously travel elsewhere and resume trading. SelfExclude aims to make the block portable across the prediction market industry regardless of jurisdiction.

Regulatory Context and Problem Gambling Concerns

The CFTC classifies prediction market event contracts as financial instruments, not gambling, meaning traditional gambling-regulator requirements for self-exclusion do not apply by default. However, regulators and advocacy groups have pushed back on this framing as trading volumes surged. By early 2026, monthly volume on major platforms exceeded $24 billion combined, and problem gambling organizations joined Nevada's legal fight against Kalshi, arguing that its sports-heavy contract mix mimics betting products and creates compulsive-behavior risk. In response to this pressure — and in anticipation of potential CFTC mandates — Kalshi announced responsible trading features in March 2025 and formalized the self-exclusion partnership a year later. The debate mirrors the arc of Daily Fantasy Sports regulation: an industry argues financial-product framing while regulators and advocacy groups push for Anti-Money Laundering and consumer-protection frameworks traditionally associated with gambling. Geofencing controls and KYC verification form complementary layers of user-protection infrastructure alongside self-exclusion.

Related Terms

Kalshi
Kalshi is a US-based prediction market exchange regulated by the CFTC as a Designated Contract Market, allowing traders to buy and sell event contracts on real-world outcomes. It was the first exchange to receive CFTC approval specifically for event contracts, launching its first markets in 2021.
Geofencing
Geofencing is the practice of using a user's detected geographic location — via IP address, GPS data, or identity verification — to restrict access to prediction market trading in prohibited jurisdictions. Platforms use it to comply with US state gambling laws, international financial regulations, and OFAC sanctions requirements.
KYC
KYC, or Know Your Customer, is the identity verification process that regulated financial platforms use to confirm a user's identity before allowing them to trade. On CFTC-regulated prediction market exchanges like Kalshi, KYC is mandatory and includes submission of a government-issued ID, Social Security Number, and a selfie matched by facial recognition software.
Anti-Money Laundering
Anti-Money Laundering (AML) refers to the legal framework and compliance practices that prediction market platforms must implement to detect and prevent the use of trading activity to launder illicitly obtained funds. CFTC-regulated exchanges must establish AML programs under the Bank Secrecy Act, including customer identification, transaction monitoring, and suspicious activity reporting.
CFTC
The Commodity Futures Trading Commission (CFTC) is the independent US federal agency that regulates derivatives markets, including futures, swaps, and event contracts traded on prediction market exchanges. It grants Designated Contract Market status to exchanges like Kalshi and enforces anti-manipulation and anti-fraud rules.
More in Regulation & Risk
← Previous
Liquidity Risk

Find the best odds on every market

Compare live prices across Kalshi, Polymarket, and more — spot arbitrage and trade the sharpest line on any event.

Compare Markets