Kalshi Raises $1 Billion at $22 Billion Valuation as Legal Battles Mount Across Multiple States

Image credit: Shutterstock

Prediction market platform Kalshi has closed a $1 billion Series F funding round at a $22 billion valuation, doubling the company’s worth from five months prior, The round was led by Coatue Management, with participation from Andreessen Horowitz, Sequoia Capital, Morgan Stanley, and Ark Invest.

Kalshi’s Annualized Revenue Run Rate Surpasses $1.5 Billion

A company spokesperson told Bloomberg that Kalshi’s annualized revenue run rate has exceeded $1.5 billion. The platform operates as a centralized, federally regulated marketplace where users trade on the outcomes of real-world events, including elections, economic data releases, and sports. 

That structure distinguishes it from rival Polymarket, which runs on decentralized blockchain infrastructure. Together, the two platforms accounted for the majority of more than $25 billion in prediction market volume recorded in April 2026.  

Kalshi Appoints Crypto Head, Eyes Expansion Into Major Apps

Andreessen Horowitz’s crypto unit, a16z crypto, recently raised $2.2 billion for its latest fund and identified prediction markets as a major investment theme. Separately, Kalshi has moved to expand its presence in crypto. The company appointed John Wang as its head of crypto, and Wang told Forbes: 

“We would like to have Kalshi’s prediction markets in every large crypto app.”

Kalshi Named in at Least 19 Federal Lawsuits Over State Gambling Laws

The funding round comes as Kalshi faces at least 19 federal lawsuits over whether its event contracts violate state gambling laws. According to NPR, Kalshi is named in at least 19 federal lawsuits over whether its event contracts violate state gambling laws. Massachusetts, New Jersey, Arizona, Nevada, Illinois, and Connecticut have each challenged Kalshi’s operations, with those states arguing that certain sports and event-based contracts constitute unlicensed gambling. 

Several Democratic members of Congress sent a letter to the CFTC calling for tighter oversight of prediction markets, citing what they described as ‘suspicious trades’ linked to geopolitical events. Bernstein noted separately that prediction markets are entering an “institutional era,” driven by institutional demand to use event contracts as hedges against economic and geopolitical risks, according to Bernstein. 

Kalshi Appoints Stephanie Cutter as Policy Adviser to Navigate Regulatory Pressure 

In response to the growing regulatory and political pressure, Kalshi brought on former Obama administration staffer Stephanie Cutter as a policy adviser. Kalshi said the hire was aimed at strengthening its relationships in Washington amid ongoing regulatory and legal challenges.