Kalshi has secured $1 billion in funding at a $40 billion valuation as it broadens its ambitions beyond sports and election contracts into financial trading.
Announced on 29 October, the round was co-led by Sequoia and Wellington Management. Tiger Global Management and Dragoneer Investment Group also participated, according to Reuters, citing a source familiar with the transaction.
Valuation Climbs Nearly 82% Since Previous Billion-Dollar Funding Round
The latest investment follows a $1 billion Coatue-led round in May that valued Kalshi at $22 billion. Its valuation has increased by nearly 82% in just over five months.
New York-based Kalshi aims to become a multi-asset trading platform competing with established exchanges, including CME Group and Intercontinental Exchange, which owns the New York Stock Exchange.
Those ambitions extend its business beyond the event contracts that initially built its profile in sports and election trading.
Perpetual Futures And Index Partnerships Broaden The Product Offering
After receiving Commodity Futures Trading Commission (CFTC) approval, Kalshi entered perpetual futures in September 2026. Cryptocurrency products came first, followed by equity indexes and metals.
Known as ‘perps’, these derivatives have no expiry date, allowing positions to remain open without rolling contracts. High leverage can increase both potential gains and losses. An agreement with S&P Dow Jones Indices covers index-linked event contracts, including products tied to the S&P 500, and indices developed using prediction-market data.
Separately, the NBA named Kalshi and Polymarket Preferred Prediction Market Exchanges within a framework incorporating a memorandum of understanding with the CFTC.
Utah Criminal Charges Add To Dispute Over Federal And State Jurisdiction
On 28 October, Utah Attorney General Derek Brown filed criminal charges against Kalshi and co-founders Tarek Mansour and Luana Lopes Lara.
Authorities accuse the company of promoting illegal online gambling and allowing an undercover agent to place sports wagers. Charges comprise one count of engaging in a pattern of unlawful activity, 12 counts of online gambling promotion and one count of general gambling promotion.
Kalshi rejects the allegations, characterises the action as overreach and intends to challenge the case. Proceedings follow Utah’s separate civil lawsuit against Kalshi and related entities. Meanwhile, the CFTC has sued Utah, arguing that state gambling laws cannot be applied to prediction-market operators registered under federal commodities rules.
The central dispute concerns whether sports contracts are federally regulated financial products or gambling subject to state law. Kalshi also faces litigation in other US jurisdictions.
Trading Share And Consumer Interest Show Different Competitive Positions
Prediction markets have gained prominence since the 2024 US presidential election, with increased trading across sports, politics and other events. Dune Analytics figures cited by Reuters indicate that Kalshi overtook Polymarket in market share over the past year.
Consumer interest presents a different picture. Blask’s July 2026 Brand’s Accumulated Power measure put Polymarket at 71.65% of the US prediction-market sector, compared with Kalshi’s 25.09%. These brand figures should remain distinct from regulated trading volumes.
The funding gives Kalshi more resources to pursue financial products and institutional partnerships, but valuation growth does not resolve its legal exposure. Expansion into leveraged derivatives also raises different customer-risk considerations from event trading. Its progress should be assessed through product adoption, trading activity and regulatory outcomes.
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