Hollywood Studios Ban Employees from Betting on Kalshi and Polymarket
Hollywood is tightening policies on staff bets on prediction markets. Can it be enforced?
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Hollywood studios have started banning employees from betting on Kalshi and Polymarket. The reason? Concerns that insiders could exploit confidential information. Several firms have introduced anonymous reporting channels for suspected insider betting, although enforcing the rules is a challenge.
The crackdown comes after a high-profile insider betting case involving a MrBeast employee. Another one involved an active-duty US soldier, who was accused of using classified information to place prediction market wagers.
Because of these cases, Hollywood studios are tightening restrictions on employee betting at prediction markets such as Kalshi and Polymarket. Still, despite the move, many believe that the enforcement of the rules will be a steep hill to climb.
Hollywood Takes a Hard Stance on Prediction Market Betting
Per a report by The Hollywood Reporter, companies in Hollywood are rolling out guidelines that prohibit employees from betting on recent industry developments. Restrictions cover things they know about their jobs, including casting decisions, studio earnings, movie release dates, production schedules, and award nominations.
The latest rules also prohibit employees from sharing confidential information with friends and family. The reasoning for this is that they might place bets on their behalf. Some companies have even launched whistleblowing strategies. Employees are urger to report colleagues anonymously if they suspect they’re using insider knowledge to place prediction market bets.
It goes deeper than just Hollywood. The Penske Media Corporation (PMC), parent company of The Hollywood Reporter, Variety, Deadline, and others, has recently updated the employee handbook on the same thing. All these restrictions come at a time when prediction markets are heavily expanding into entertainment, giving users a chance to wager on a variety of possible outcomes.
Several prediction markets now accept bets on lead actors for upcoming shows, or next elimination on reality shows. Kalshi, for example, has markets on the next lead actor for the James Bond franchise, as well as Rotten Tomatoes scores for upcoming movies.
Sudden movements in such markets have raised concerns of inside trading, as Hollywood employees might have access to confidential casting information before an official announcement.
Prediction Markets Are Tightening Rules Too
Prediction markets are tightening up the screws on their own end as well. In June 2026, Kalshi released sweeping measures to fight insider trading. In a highly publicized move, the company required employer information from users in some markets.
Kalshi explained that the requirement only applies to markets with heightened insider or manipulation risk. The platform also shared plans for an improved whistleblower policy, and noted that it opened 150 investigations into alleged insider trading cases.
Others have followed its example, and these policies have been a success. In February 2026, Kalshi confirmed that a video editor from MrBeast’s firm made unfair profits by using insider information to bet on MrBeast’s content.
Federal prosecutors have checked these cases, too, charging suspects with insider trading on prediction markets. For example, a Google engineer was charged with counts of money laundering and commodities fraud, after he made several Polymarket wagers using confidential data from his company.
Despite the restrictive rules, experts still believe that employees can sidestep them and make unfair profit. Blockchain-based platforms may allow users to trade via anonymous cryptocurrency wallets, so it would be difficult for firms and authorities to connect the dots.
