Published on: February 10, 2026, 01:52h.
Updated on: February 10, 2026, 01:52h.
- FanDuel co-founder warns Kalshi must tread carefully or face consequences similar to the vaping brand Juul.
- He critiques Kalshi’s aggressive advertising strategies as potentially ineffective.
- Comparisons made between Kalshi and Skillz reflect ongoing industry concerns.
Nigel Eccles, co-founder of FanDuel, cautioned that Kalshi is on a precarious trajectory reminiscent of the vaping company Juul, suggesting that without prudence, it might encounter a similarly troubling fate.
In a recent update on X, Eccles highlighted the similarities between Kalshi and Juul, a prominent player in the vaping sector.
“For those who may not recall, Juul was a leading brand in the vaping landscape during the 2010s,” remarked Eccles. “They took a product with potential benefits (aiding smokers in quitting) and aggressively marketed it to a new audience, including non-smokers and particularly younger individuals. (Do you see the parallels?)”
Juul’s peak was marked by Altria (NYSE: MO) acquiring a 35% share in 2018, valuing the firm at $38 billion. However, with escalating scrutiny over Juul’s alleged marketing toward teens, its valuation plummeted by 85% in just two years, leading Altria to suffer a 95% loss on its investment by 2022.
Eccles Raises Concerns About Kalshi’s Advertising Strategies
Amid ongoing controversies surrounding Kalshi and other prediction market platforms, issues of framing event contracts as a distinct asset class from traditional betting have arisen.
By leveraging their recognition as federally regulated entities and positioning event contracts as financial derivatives, prediction market companies permit clients as young as 18 to create accounts, in contrast to the 21-year minimum for sports betting. Eccles argues that this approach is atypical in the gaming sector and may backfire for those who adopt it.
“Having worked in the online gaming industry for over 25 years, I can tell you this kind of marketing is exceedingly uncommon in real money gaming. Primarily, it’s seen as highly unethical. Surprisingly, many in the gaming field genuinely care about issues like underage gambling and problem gambling,” he stated in the post on X.
He notes that this strategy poses a significant risk for companies such as Kalshi, as young individuals who may lose money on these platforms are unlikely to return, indicating a churn in customers rather than establishing loyalty.
Another Questionable Analogy
Eccles didn’t stop with Juul. He observed that certain Kalshi ad campaigns depict prediction markets as an avenue for additional income, similar to tactics previously seen with Skillz (NYSE: SKLZ), which has also faced its share of controversies.
“The only other firm I can recall employing this kind of advertising approach was Skillz, which heavily promoted the ‘second income’ narrative,” Eccles mentioned.
The FanDuel co-founder pointed out that Skillz’s stock performance has been catastrophic. Since going public in December 2020, the company’s shares have plummeted by 98%, resulting in reverse stock splits along the way.