What happened?
Kalshi, a CFTC‑regulated U.S. prediction market, raised $300 million at a $5 billion valuation. The company says it’s grown explosively—around $50 billion in annualized volume—and now captures over 60% of global prediction‑market activity. It also announced expansion to more than 140 countries and secured heavyweight backers like Sequoia, a16z and Paradigm.
Who does this affect?
Retail traders and sports bettors get broader access as Kalshi partners with platforms like Robinhood and Webull and adds sports parlays to its offerings. Institutional investors and venture firms are being drawn in by the surging volumes and liquidity, while incumbent betting companies like DraftKings and FanDuel face increased competition. State regulators and legal systems are also affected, since CFTC oversight in some areas clashes with state gambling laws and has already triggered lawsuits.
Why does this matter?
This matters because Kalshi’s growth helps legitimize prediction markets as a large, investable market that can shift volume and revenue away from traditional sportsbooks and influence price discovery on real‑world events. Big funding and rising liquidity make these markets more attractive to institutional players and could force incumbents to innovate or lose share. At the same time, mounting regulatory pressure and cross‑jurisdictional questions could reshape where these markets operate and how investors value them.