Online prediction marketplace Kalshi has raised more than $300 million at a valuation of $5 billion as prediction markets move into the financial mainstream, according to a New York Times report published Friday.
The company will now allow users in more than 140 countries to place bets, marking its first major international expansion, the article said.
Kalshi forecasts an annualized trading volume of $50 billion this year, up from $300 million last year, and now has more than 60% global market share, surpassing rival Polymarket.
The funding round was led by major investors including Sequoia Capital, Andreessen Horowitz, Paradigm, CapitalG and Coinbase Ventures, the New York Times reported.
The growth was driven by sports betting, particularly parlays, which puts pressure on sportsbooks like DraftKings (DKNG) and FanDuel Group, the report noted. Kalshi has also integrated with platforms like Robinhood (HOOD) and Webull (BULL) to make event trading more accessible.
Nonetheless, regulatory oversight remains a challenge, the article said. After clearing a federal hurdle with the U.S. Commodity Futures Trading Commission (CFTC) earlier this year, Kalshi now faces lawsuits from several U.S. states accusing him of circumventing sports betting laws.
Learn more: Massachusetts Attorney General Alleges Kalshi Violated Sports Gambling Laws
