Kalshi SUED By People BETTING MONEY On Iran Leaders Death
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182.87408
Summary
A massive lawsuit has been filed over the killing of Ayatollah Khomeini in Iran, and it s not for any of the reasons most people would expect. It s because people were betting on the death of this man to the tune of $54 million and they did not get paid. This all has to do with the emergence of the prediction market, and what people expect when they make wagers on the outcome of a future event, which has presented us with very weird circumstances.
Transcript
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A massive lawsuit has been filed over the killing of Ayatollah Khomeini in Iran
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and it's not for any of the reasons most people would expect.
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It's because people were betting on the death of this man
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to the tune of $54 million and they did not get paid.
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This all has to do with the prediction market emergence.
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Kalshi and Pali market and what people expect when they make wagers.
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They're buying contracts on the outcome of a future event
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which has presented us with very weird circumstances.
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will or will not appear at a White House press briefing this year.
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And there are questions about whether or not I'm allowed to say anything.
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Insider trading rules, regulations under the CFTC,
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Because personally, I'm not completely opposed to the idea of prediction markets,
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but there are circumstances arising around whether or not something is or is not insider trading.
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Recently, a story came out about a potential insider
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who accurately predicted major moves by the U.S. military
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and profited to the tune of $100,000 in one month.
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This individual is predicting that the U.S. will likely have boots on the ground in Iran,
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but we'll see how much of this is actual insider knowledge
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and how much of this is just speculation on a market
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where you can sell your contract at any point for a profit.
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The story with Kalshi is actually quite simple.
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Khomeini was killed, and many people bet he would be out as supreme leader.
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But Kalshi qualified this by saying death does not count as leaving office.
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under the assumption that death meant leaving, it doesn't count.
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Because some people wagered he would not be out as supreme leader.
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And if the rule is, in order to qualify for this bet as a yes or a no,
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Or have someone come in and say, you are being removed.
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then no is 100% and should pay out to those who bought that contract.
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However, what ends up happening is Kalshi basically says,
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we're going to freeze the market and pay everyone out
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So my friends, we're going to talk about this latest news,
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but we're really going to dive into the wild world
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that is getting massively like Scrooge McDuck rich
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off of just guessing that something might happen.
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we here at Timcast actually do have a sponsorship from Kalshi.
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And with respect, I'm not going to hold back my thoughts and opinions for that matter,
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but I will disclose we do have that sponsorship.
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Additionally, I actually fall into this class action camp,
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strangely, because I had previously made a purchase of contracts
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that Khamenei would also be, he would be leaving office.
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And I did this under the presumption we were going to blow him up
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because Trump said he was going to blow him up.
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that you were going to be expecting Khamenei to step down
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from his lifetime appointment as the Supreme Leader.
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And, you know, theoretically, you get old and he says,
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I am not interested in any class action lawsuit
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But I'll give you my genuine, honest thoughts and opinions
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on the wacky and wild world that is prediction markets.
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I think the problems we face when it comes to potential gambling
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And I think it's fine if somebody wants to have fun
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And abuse, I think, can be solved through cultural remedies.
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But if you want to drink canned pool branded water,
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Limited supply, as of right now, we have 12-packs.
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because it's a gag product and we're goofing off.
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because almost every single can that you'll get
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I want to get official certification to make sure
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And that matters because I'm not here to lie to you guys.
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Betters wagered $54 million on Khomeini's death.
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by correctly betting on the Iranian leader's demise.
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on the dystopian rise of gambling on real world events.
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But my friends, Bloomberg Law with the breaking news
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speculating when Iran's Supreme Leader Ali Khamenei
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And they didn't adequately disclose a death carve out
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until after news of Khamenei's death had spread.
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Said the complaint filed in the U.S. District Court
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U.S. and Israel have begun major combat operations
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I just think that most people didn't know this.
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is that Kalshi knowingly was bringing people in,
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But buying contracts on the outcome of Khamenei dying,
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that Khamenei would be out as a supreme leader,
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which creates a very, very interesting circumstance.
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or I should say the individuals launching this lawsuit,
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However, if it is true that Kalshi's rules explicitly
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Khamenei can never be politically removed from office.
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This should mean that I should retroactively get zero dollars.
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Because when the news broke that the palace had been bombed,
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here's another, okay, this is where it gets really crazy.
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Kalshi should have reversed all trades up to that point
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which means I lose 100% of the money that I put in,
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and anybody who bet no should instantly get a 100% payout
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the expectation and presumption and ultimate conclusion is
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then I should be paid out an additional 300 and some odd dollars.
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Therein lies the problem with prediction markets.
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Imagine you bet on the outcome of a Bears game.
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Only problem is there's no reporters and no fans
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or you wake up to hear all these reports on social media
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So you get the option to sell out your position
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They shouldn't allow any more betting after the fact
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and then we'll get into what's going on currently
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with maybe we can learn something from these markets.
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those with yes would receive their full payout.
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Poly market is not regulated in the United States.
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because someone's incentivized to go kill them.
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they actually gave me an extra 30 some odd dollars.
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I thought they were going to take all the money away