Prediction market operators Kalshi and Polymarket are reportedly seeking funding that could value both of them at around $20 billion.
Key Takeaways
- According to reporting by the WSJ, Kalshi and Polymarket are talking to new investors, which would see valuations shoot up to $20 billion.
- Kalshi was last valuated at $11 billion, and Polymarket at up to $9 billion.
- The valuations come as scrutiny is rising over specific contracts available on the platforms.
According to reporting from the Wall Street Journal, both companies have recently spoken with potential investors about raising capital at valuations near that level, which is double their 2024 valuations. The talks, however, are said to be in their early stages.
Founded in 2018 by Tarek Mansour and Luana Lopes Lara, Kalshi is currently the only fully regulated prediction market exchange in the U.S. It allows users to trade contracts on a wide range of outcomes, including political events, economic indicators, and sports results. It was valued at around $11 billion as recently as December.
Its main rival, Polymarket, was founded in 2020 by Shayne Coplan and has become one of the largest prediction markets globally. At its last valuation in October 2025, it was rated at $9 billion, after Intercontinental Exchange, the owner of the New York Stock Exchange, invested $2 billion into the operator.
Despite their growth, both companies have been criticized for some of their available contracts. In recent months, users have been able to place bets on geopolitical developments such as a potential U.S. attack on Iran or the removal of Iran’s former supreme leader.
Lawmakers have also raised concerns about marketing aimed at younger users. The WSJ also reported last week that both companies had been heavily promoting their services on social media and even partnered with college fraternities to recruit new users.
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Senators move to ban government officials from prediction market trading
More scrutiny surrounds prediction markets Kalshi and Polymarket, as lawmakers have also introduced new legislation aimed at limiting who can trade the event contracts they offer and those of their rivals.
Senators Jeff Merkley and Amy Klobuchar are reportedly drafting a bill that would ban members of Congress, the President, and the Vice President from trading such contracts.
Under the proposed rules, other executive branch officials could also face restrictions. Violations would carry fines of $10,000 per incident, while offenders would have to repay any profits they earned through the banned trades.
“When public officials use non-public information to win a bet, you have the perfect recipe to undermine the public’s belief that government officials are working for the public good, not for their own personal profits,” Merkley said in a statement.
The legislation follows several controversial trades on prediction markets. In one case, anonymous traders reportedly made a profit from bets predicting a U.S. strike on Iran just before it happened, and in another, one trader earned over $400,000 betting on the removal of the Venezuelan President.
Additional proposals are also emerging.
Senator Chris Murphy is reportedly working on separate legislation to curb trading tied to government actions, while some conservative policy groups have said the sector should instead be regulated more like traditional sports betting.
