Circa Sports Owner Calls Kalshi and Polymarket “Thieves” for Their Edge Over Sportsbooks

^{Derek Stevens, owner and founder of Circa Sports}

Circa Sports owner Derek Stevens has criticized prediction markets Kalshi and Polymarket, arguing that they have gained an advantage over traditional sportsbooks because they face fewer mandatory costs. He made the comments in an interview with CDC Gaming.

According to Stevens, Circa and other licensed sportsbooks pay the federal excise tax on sports betting, state gaming taxes, sports league data fees, and contributions to problem gambling funds.

Kalshi and Polymarket, meanwhile, offer customers markets on the outcomes of sporting events without bearing comparable costs.

“We’re paying all those fees. They don’t. Effectively, they’re thieves,” Stevens said.

He also compared this type of competition to selling stolen televisions in a store parking lot: the seller can offer them at half the normal price because they do not bear the costs associated with running a legitimate business.

According to the Circa Sports owner, this allows prediction markets to offer customers more favorable terms. Stevens acknowledged that they have already taken a noticeable share of betting handle away from Circa. The impact is particularly significant for the company because it operates a low-hold model.

Stevens also believes U.S. states will resist such competition because of the risk of losing some tax revenue from sportsbooks. He did not rule out the possibility that the dispute over the regulation of prediction markets could ultimately reach the U.S. Supreme Court.