If you’ve been following the news lately, you may have heard the name Kalshi. The predicative markets-trading post has been called a sportsbook by legislators, which isn’t exactly accurate based on the company’s mission and offerings.

So if Kalshi isn’t a sports-betting company, but you can win real money while playing on the site, what is it? I’m so glad you asked. Here’s what Kalshi is and how to play on the site during the Final Four.

What is Kalshi?

Kalshi defines itself as a financial institution that accepts predictions trading on outcomes in sports, politics, culture and more.

If that sounds like a sportsbook, then some would agree. But there are some marquee differences, including the fact Kalshi is regulated by the federal government’s Commodity Trading Futures Commission.

That means Kalshi is legal and able to operate in 47 states plus Washington, D.C (New Jersey, Ohio and Nevada have restricted access by filing lawsuits, more on that later).

How does Kalshi work?

As a predictions-trading market, Kalshi is a financial institution that effectively gauges public sentiment on an outcome happening.

Just as people can trade stocks online based on forecasts and a particular company’s outlook, they are now able to trade on certain events happening.

Unlike a sportsbook, Kalshi is not the house, meaning it does not profit off losing “contracts.” It simply takes a 2 percent commission on all traded contracts.

Plus, as a federally regulated financial institution, Kalshi offers an interest rate of 3.75 percent APY for those who keep at least $250 in their account.

Kalshi rose to popularity after it began allowing users to predict the 2024 U.S. Presidential Election. It was the only legal, regulated site to allow Americans to cash in on the Trump vs. Harris election.

The amount won depends on public sentiment, since Kalshi pays an equal share of the total amount of shares purchased to whichever side was correct. That means the pay out is less for people who pick the more popular side.

If all that wasn’t enough, the Kalshi promo code also gives new players who trade $100+ a $10 bonus to use on sports markets, including the Final Four.

How to pick the Final Four with Kalshi

Auburn to advance to national championship game

The Tigers are the No. 1 overall seed in the tournament and have won four straight since their late-season malaise. Still, they are a clear underdog against their conference rival, Florida. The Gators defeated the Tigers 90-81 in their first game Feb. 8.

Since the public is backing Florida by a 61-39 margin, the payout for a wager on Auburn is more lucrative.

A prediction of Auburn will earn winners $2.44 per share. That means $5 worth of shares bought would pay out $12.20 if the Tigers defeated the Gators — odds of +144 and more lucrative than the +130 or so available at online sportsbooks.

Again, Kalshi is available in all 50 states, which means if you’re a Tigers fan in Alabama and want to have some skin in the game, it is a solid option.