Martin Shkreli, AOC Agree Kalshi Has A Problem

Martin Shkreli and U.S. Rep. Alexandria Ocasio-Cortez are unexpectedly aligned in arguing that Kalshi hasn't gone far enough in policing who can trade on its event markets.

DKNG stock is moving. See the chart and price action here.

Shkreli and AOC's Rare Agreement

In a social media post, Ocasio-Cortez blasted Kalshi's new guardrails, calling its insider‑trading crackdown "just a fig leaf" and "absolutely not enough."

This is absolutely not enough.

Just on the policy piece alone, there are SO many individuals – staff, advisors, consultants, cabinet secretaries, spouses, and more – that can trade on insider information.

This is just a fig leaf to deflect from criticism. We need to do more. https://t.co/9arxK8KPF0
— Alexandria Ocasio-Cortez (@AOC) March 23, 2026

She argued that simply blocking athletes and politicians from wagering on related sports and political markets ignores a long list of insiders with material nonpublic information, including staffers, advisors, consultants, cabinet members and even spouses.

Kalshi's policy update preemptively bans political candidates from betting on their own races and blocks college and pro athletes, team personnel and referees from trading on markets tied to their sports.

The company says these moves, plus new pre‑trade screens, are meant to satisfy congressional concerns about insider trading as lawmakers push a "Prediction Markets Are Gambling Act" aimed at sports‑ and casino‑style contracts.

Pharma Bro Chimes In

Into that firestorm stepped Martin Shkreli, who replied "You are right" to AOC's critique after previously arguing that sports prediction markets should be banned.

When a convicted securities‑fraud defendant and a progressive Democrat converge, it spotlights how politically exposed Kalshi's business model has become.

Their shared concern is that information‑rich insiders can still trade around policy decisions or game outcomes in ways that ordinary users cannot, even with Kalshi's narrower bans in place.

How To Trade It

Investors who think regulatory and political heat will intensify around prediction markets might look at traditional gambling and exchange names that could benefit if Kalshi's growth is curtailed:

DraftKings Inc. (NASDAQ:DKNG): A leading U.S. online sportsbook that has already seen prediction‑market competition pressure its share price as platforms such as Kalshi have diverted NFL betting volume. A crackdown on federally regulated event contracts could shift sports wagering dollars back toward licensed sportsbooks.
Flutter Entertainment Plc (NYSE:FLUT): The owner of FanDuel, has a large U.S. sports‑betting footprint similarly sensitive to the competitive threat from low‑friction prediction markets.
CME Group Inc. (NASDAQ:CME): The derivatives giant has explored event‑style contracts of its own, positioning it to capture institutionalized prediction‑market demand if smaller venues face tighter rules.

Photo: Grossinger / Shutterstock