Nate Tramdaks, Staff Writer

Kalshi, a sport gambling company, finalized a deal and partnership with Epic Games over the weekend. Klashi is bringing a prediction-market style feature to Fortnite called “Fortnite Futures.” This feature will allow players to trade contracts on in-game outcomes, using the in-game premium currency, V-Bucks, as the settlement tool. V-Bucks can be acquired by purchasing them with U.S. dollars or, the game allowing you to work for them, though this path does not render many V-Bucks. 

Starting next month, Fortnite players will be able to bet on anything from winning in a game, survival time, final zone location and eliminations. “Things as o/u 3.5 eliminations,” “Will I place Top 10 – Y/N,” “Will I survive for 10 minutes – Y/N.” This new feature provides players with two ways to bet: against the house or against other players. Against the house is simple. Players make bets before or during the game and losses go to Fortnite, and wins flow from Fortnite to you. Against other players is also interesting; you can wager against another player a variety of different bets, and the wins and losses flow from the loser to winner. 

From Fortnite’s standpoint, this new feature is supposed to entice players and users to stay on the game longer. Instead of returning to the lobby after being eliminated, they can spectate the match and make live bets on the game they were a part of. They are aiming at a slow burn over the quick match turnover they have now. Moreover, the prospect of acquiring enough V-Bucks to purchase their favorite in-game cosmetics should be enough motivation to keep kids playing longer. Kalshi’s end of the deal sees them acquiring and getting introduced to a younger audience, like the cigarette-industry, prediction-markets and gambling institutions need more potential users in the pipeline. 

Of course, the common ground for the two partners on this deal is the prospect of thicker margins. With kids purchasing V-Bucks, that is money that goes into Epic Games’ pocket. The deal outlines that however much is wagered in-game in terms of USD, gets split 50-50 between the two companies. 

The announcement of the deal has left the gambling regulators, legislators and competitors of Kalshi dumbfounded. The Kalshi x Fortnite deal is using a “gambling loophole,” allowing persons under the age of 18 to partake in sweepstakes. Since users/players are not actually placing bets with real money, rather the fake in-game currency, the act is not deemed gambling. Motions have already been filed against the predatory partnership, but not much can be about it in the short-term. Since this is a sound loophole, the lower courts will not be able to overturn the partnership. This case will likely be sent to the Supreme Court where it will sit as a low priority case for years–that is until more data comes out about the negative effects of this partnership.