Popular prediction market platform Kalshi is reportedly set to double its valuation in a few months behind a new $1 billion funding round.
Key Takeaways
- Kalshi’s valuation was $11 billion before the latest round of reported funding.
- Kalshi had a massive trading day during the NCAA tournament.
- The prediction platform is dealing with a long list of competitors and legal battles.
Technology investment firm Coatue Management is leading the influx to lift Kalshi’s worth to $22 billion, according to the Wall Street Journal on Thursday. The trading exchange’s revenue run rate is reportedly $1.5 billion.
The increased investing came on the same day that Kalshi saw nearly $600 million traded during Thursday’s NCAA men’s basketball tournament games, the platform’s second-biggest day ever.
Today will be Kalshi's second-biggest day of trading volume on record, behind only the Super Bowl. Looks like it will end just shy of $600 million. Top markets: pic.twitter.com/lu5dUIWhU9
— Dustin Gouker (@DustinGouker) March 20, 2026
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Soaring investments
Regulated by the Commodity Futures Trading Commission and available across the U.S., Kalshi has become an incredibly attractive investment since bursting onto the scene in 2024, when it won a court order to allow the prediction platform to offer event contracts on the Presidential Election.
Since then, Kalshi has ventured into sports, entertainment, culture, and various other event contract categories, allowing users to trade on everything from March Madness to the weather.
Last August, Kalshi received a $300 million funding round that pushed its valuation from $2 billion to $5 billion. Its popularity and worth have soared since then, leading to a recent valuation of $11 billion.
Competitive space
Along with competitor Polymarket, both companies have been preparing for a jump to $20 billion valuations as investment dollars continue to flow into both. The prediction market space has exploded not only in volume of sports event trades on those two platforms, but also in the number of competitors.
DraftKings and FanDuel, the two biggest brands in sports betting, launched their own trading exchanges in late 2025, and both are promising more and more resources to those platforms. Daily fantasy sports operator Underdog announced a new plan to focus on prediction markets earlier this month, and competitor PrizePicks is also offering sports contracts.
Legal problems
This growth has also brought legal issues. Kalshi is involved in a dozen lawsuits as jurisdictions with state-regulated sports betting look to keep the prediction market operators from offering sports contracts to their residents. Massachusetts and Nevada are deep into court orders and appeals in their battle against Kalshi.
Many of Kalshi’s trading markets on college basketball, the NFL, NBA, MLB, and NHL resemble those offered on traditional sportsbooks, like spreads, totals, moneylines, and props. Even though Kalshi’s users are trading with each other and not going against the house, many state regulators call it illegal gambling offered by a non-licensed, non-taxed operator.
