TL;DR:
- Kalshi has begun preliminary talks with investment banks for a possible IPO, according to The Information.
- The prediction markets platform surpassed $2 billion in annualized revenue and reached a valuation of $22 billion.
- Kentucky joined the states that have sued Kalshi for allegedly operating sports betting platforms without a license.
Kalshi, the prediction markets platform that closed a $1 billion Series F round in May, has begun informal conversations with investment banks to explore a potential initial public offering, according to a report published by The Information. The company has not commented on the matter.
Kalshi surpassed $2 billion in annualized revenue, double the $1 billion pace The Wall Street Journal had reported in March. The Series F round that preceded these conversations was led by Coatue, with participation from Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley and ARK Invest, and brought the company’s valuation to $22 billion.
In terms of trading volume, Kalshi continues to dominate its market. In May it recorded $16.81 billion in monthly volume, up from $14.81 billion in April. Its main competitor, Polymarket, reached $7.08 billion in the same period, down from $9.01 billion the previous month.
Kalshi: Regulators, States and a Dispute That Keeps Escalating
The growth of prediction markets has not gone unnoticed by policymakers and regulators. This week, U.S. gaming industry groups sent a letter to the Senate requesting that crypto market structure legislation include language explicitly prohibiting prediction markets tied to sports and casino-style betting.
Kentucky became the latest state to file lawsuits against Kalshi, Polymarket and related entities, accusing them of operating illegal sports betting platforms without a license. Several other states have taken similar action in recent months.
The Commodity Futures Trading Commission maintains that prediction markets fall under its exclusive oversight pursuant to the Commodity Exchange Act. The agency has already sued multiple states that attempted to restrict these platforms, deepening a dispute that shows no signs of resolution in the near term.
