Hollywood cracking down on industry insiders betting on Kalshi, Polymarket

Entertainment industry insiders seeking to profit from prediction market betting, such as on platforms Kalshi and Polymarket, will face stricter restrictions, according to The Hollywood Reporter. Studios and production companies have introduced new guidelines that forbid employees from leveraging their knowledge of casting news, release dates, and studio earnings to wager on events like Dancing With The Stars winners or the next James Bond film.

Sharing insider tips with friends and family to place bets is also prohibited. Hollywood's crackdown on insider betting is considered serious, with one company reportedly establishing an anonymous hotline for reporting violations. Media conglomerate PMC, which owns THR, Variety, and Deadline, recently revised its employee handbook to explicitly outlaw prediction market betting.

The surge in popularity of prediction market sites like Kalshi and Polymarket has prompted this regulatory push, despite the existence of prior regulations. However, identifying an employee linked to a specific bet can prove challenging, and several loopholes and gray areas persist. For instance, individuals attending pre-taped TV show episodes could place bets based on knowledge of the script without being classified as industry insiders. Consequently, it is unlikely that Hollywood will swiftly resolve these issues.