Kalshi has raised another $1 billion at a $40 billion valuation, nearly doubling its value in five months as the prediction market operator’s rapid expansion continues despite mounting legal challenges to its sports contracts.
The Series G funding round, announced Thursday, was co-led by Wellington Management and Sequoia Capital, with participation from Andreessen Horowitz, Coatue, Morgan Stanley and other Kalshi investors.
Kalshi’s valuation has increased twentyfold since June 2025, when it was valued at $2 billion. It then climbed to $5 billion in October, $11 billion in December and $22 billion this May.
Sports fuel Kalshi growth
That surge has coincided with explosive growth since the company introduced sports event contracts in January 2025, which have since accounted for roughly 87% of its trading volume, according to Ticker-Tracker.com.
Kalshi’s annualized trading volume now exceeds $1 trillion, with more than 30 million accounts on its platform. The company also claims more than 75% of prediction market trading volume in the U.S.
“Sports brought millions of people to Kalshi and helped establish deep liquidity,” the company said, describing sports as its initial breakout product.
The new funding will support further expansion into institutional trading, new financial products and international markets, particularly Europe and Latin America.
Legal uncertainty persists
Kalshi’s soaring valuation comes as the legality of its sports business remains contested nationwide.
State gambling regulators have challenged the company’s ability to offer sports contracts without gaming licenses, while the Commodity Futures Trading Commission has increasingly intervened in federal court to defend its authority over federally regulated prediction markets.
The disputes have produced conflicting court rulings, leaving the industry’s regulatory future uncertain even as investors continue pouring billions into the sector.
Most recently, Utah filed criminal gambling charges against Kalshi and its founders, prompting competing legal actions involving the company, state officials and the CFTC. DraftKings and FanDuel have since withdrawn certain prediction market contracts from the state, with Fanatics planning to follow.
Kalshi signs first NBA partner
The NBA signed its first prediction market deals this week, partnering with DraftKings, Kalshi and Polymarket.
Now, the first NBA team has signed a partnership with a predictions operator. The Philadelphia 76ers announced they were partnering with Kalshi on Friday.
The 76ers’ biggest offseason addition, LeBron James, has deals with both Polymarket and Fanatics.
