Kalshi Raises $185M as Regulated Prediction Market Hits $2B Valuation

On June 26, 2025, The Wall Street Journal reported that Kalshi raised $185 million in a funding round that values the firm at $2 billion. Paradigm led the round, joined by Sequoia Capital, Multicoin Capital, and others.

Kalshi CEO Tarek Mansour confirmed that part of the funds will expand the company’s technology team.

Kalshi also plans to connect its prediction contracts to more brokerage platforms. These contracts are currently available on Robinhood and Webull.

Founded in 2018 by Mansour and Luana Lopes Lara, Kalshi had previously raised $156 million, according to PitchBook.

Kalshi vs Polymarket: Regulatory Status Sets Them Apart

Polymarket , another player in the prediction market sector, is reportedly finalizing a $200 million round at a $1 billion valuation. Unlike Kalshi, Polymarket is not authorized to operate under U.S. federal regulation.

Kalshi prediction market contracts are federally regulated through the U.S. Commodity Futures Trading Commission (CFTC ).

This status allows Kalshi to offer products on compliant platforms, which Polymarket cannot do inside the U.S.

Kalshi’s regulatory position places it in a different category, particularly for users and partners seeking legal clarity in the United States.

CFTC Ends Legal Challenge Over Political Contracts

Kalshi resolved a legal dispute with the CFTC in May 2025. The regulator dropped an appeal it had filed in September 2024, which had challenged a court decision allowing Kalshi to offer political prediction contracts.

The disagreement focused on whether these contracts violated federal laws restricting gambling in commodities trading. The CFTC’s decision to dismiss the case removed a key legal obstacle.

This development followed heightened usage of prediction markets during the November 2024 U.S. election season.

Sports Markets Dominate Kalshi Trading Volume

In March and early April 2025, 79% of Kalshi’s trading volume came from the sports category, according to Bloomberg Intelligence. The platform also features contracts related to crypto, macroeconomics, and weather.

Despite being federally regulated, Kalshi has faced questions from some state regulators about the compliance status of its sports-related markets.

These concerns are tied to differing interpretations of what qualifies as gambling at the state level. Kalshi continues to operate under federal oversight while addressing state inquiries.

Kalshi Bitcoin Deposits Now Supported

Kalshi now allows users to deposit funds using Bitcoin . This update provides access to crypto-native users without requiring conversion to fiat.

Kalshi Bitcoin deposits mark another step in aligning the platform with broader trends in finance and trading.

With its regulated status, $2 billion valuation, and new Kalshi funding, the company is expanding access to prediction markets across multiple categories and platforms.

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