Kalshi Raises $1 Billion at $40 Billion Valuation as Non-Sports Revenue Run Rate Tops $1 Billion

Prediction market platform Kalshi has closed a $1 billion funding round at a $40 billion valuation, Reuters reported on Thursday, as the company expands beyond sports betting into financial markets. Prediction markets let traders buy and sell contracts tied to the outcomes of real-world events, with prices reflecting the market's assessed probability of each result.

The Series G round was co-led by Wellington Management and Sequoia Capital. Alongside the raise, Kalshi said its non-sports markets now generate more than $1 billion in annualized revenue, according to The Wall Street Journal. Run-rate figures annualize a company's most recent revenue pace, and the non-sports milestone gives a concrete measure of Kalshi's expansion beyond its sports contracts.

News of the financing first emerged in September, when Kalshi was reported to be seeking $1 billion at the same valuation. Thursday's announcement confirmed that the round had been completed.

The new valuation marks a sharp increase from May, when Kalshi completed a $1 billion Series F round led by Coatue Management at a $22 billion valuation — an increase of more than 80% in the intervening months. At that time, the company reported an annualized revenue run rate exceeding $1.5 billion.

Kalshi has recorded approximately $15.8 billion in trading volume over the past 30 days, according to DefiLlama data — a measure of total activity across the platform's event contracts.

Partnerships Expand Amid Legal Challenges

Kalshi has continued to broaden its partnerships despite mounting legal challenges across the United States. On Monday, the NBA named Kalshi and Polymarket as preferred prediction market exchanges, while S&P Dow Jones Indices — the index provider whose benchmarks include the S&P 500 — partnered with Kalshi to bring its financial benchmarks to event contracts.

The agreements come amid a legal dispute over whether Kalshi's sports contracts are subject to state gambling laws or federal derivatives regulation. Utah sued the company last week, prompting the US Commodity Futures Trading Commission (CFTC) to file a separate lawsuit on Tuesday seeking to block state enforcement. The CFTC is the federal regulator of derivatives markets in the United States, and the outcome of the dispute will determine which regime governs sports-based event contracts going forward.

On Wednesday, Utah escalated the dispute by filing criminal charges against Kalshi and its co-founders, according to a Reuters report. How the courts resolve the clash between state regulators and the CFTC will shape the legal footing on which Kalshi's sports and financial markets operate.