Published on: October 29, 2024, 08:43h.
Last updated on: October 29, 2024, 08:45h.
Jim Chanos, a prominent short seller in the US financial markets, has raised concerns about election betting platforms, possibly influenced by his political beliefs.
Referring to data from Kalshi, which reported a significant amount wagered on the US presidential election, Chanos expressed worry that even small bets could impact election betting markets and subsequently influence larger financial markets. At the time of his comments, Kalshi showed Donald Trump leading Kamala Harris with a 63% to 37% margin.
While some election betting platforms operate outside the US, Kalshi, based in New York, and Predictit, based in Washington, DC, offer event contracts on elections as derivatives, regulated by the Commodities and Futures Trading Commission (CFTC).
Chanos Could Be Concerned about Betting Market Impact
Chanos is open about his political views, sharing criticisms on various topics on X, including a preference for Democratic candidates. His skepticism towards election betting markets may stem from his political stance.
Chanos has experienced success with short sales during Republican administrations, attributing collapses of major companies to those periods. He also expressed economic concerns in Trump’s first year as president, despite positive GDP and market growth.
In the gaming industry, Chanos has a history of shorting gaming stocks like DraftKings, acknowledging their potential downside. However, he later changed his stance, indicating a shift in his investment strategy.
Chanos also held a short position in Wynn Resorts before his retirement last year.