Kalshi, the prediction market company, has closed a new funding round valuing it at $40 billion, nearly double its rival Polymarket's $21 billion valuation. The Series G round, led by Sequoia Capital and Wellington Management, raised $1 billion and included investors such as Baillie Gifford, Morgan Stanley Investment Management, Coatue Management, and Andreessen Horowitz. This round is widely expected to be Kalshi's last before an initial public offering.
Prediction markets like Kalshi have grown into cultural phenomena, bolstered by celebrity endorsements and partnerships with major sports leagues. The company has drawn tens of billions in wagers on events ranging from the Super Bowl to congressional control. Kalshi's valuation solidifies its position as a dominant player, especially after rolling out sports wagers in early 2025.
However, legal challenges persist. Opponents, including dozens of state attorneys general, argue prediction markets are indistinguishable from gambling. Kalshi maintains they fall under federal regulators' purview. Split court decisions have prompted New Jersey to petition the Supreme Court on federal pre-emption of state sports wagering laws. Despite regulatory uncertainty, investors view Kalshi as compliant, citing its history of securing federal regulation and adherence to the Commodity Futures Trading Commission.
Source: New York Times Business · Summarized by HeadlinesBriefing