Kalshi, the world’s most popular prediction market platform, has secured another $1B in investment funding, according to an official news release published Thursday. The $1 billion Series F investment round at a $22B valuation was led by Coatue Management, with participation by ARK Invest, Andreessen Horowitz, Paradigm, IVP, Sequoia Capital, and Morgan Stanley.
The funding comes as Kalshi takes aim at big-liquidity investment firms. Since November 2025, institutional trading on the exchange has soared by 800 percent.
“Kalshi will use the new capital to scale adoption across hedge funds, asset managers, proprietary trading firms, and insurance companies – unlocking access to trillions of dollars in capital, says the exchange. “The company will continue expanding its product suite, including recently-launched block trading capabilities, upcoming risk products, and deeper broker integrations tailored to institutional demand.“
Kalshi’s new approximate valuation – doubling its $11B estimated value in December – rivals that of major US-facing sportsbooks and iGaming companies. FanDuel eclipses Kalshi’s current valuation mark at roughly $31B, but perceived rival DraftKings comes in at $12B while iGaming behemoth Caesars Entertainment has a market capitalization of about $5.6 billion.
Perhaps more impressive is the sheer speed at which the forecasting platform has gained market share, particularly in the United States. “Kalshi has emerged as the clear leader in the category, with over 90% of U.S. prediction market activity, as well as the majority of global volume,” says the press release. “Over the past six months, annualized trading volume has more than tripled, growing from $52 billion to $178 billion.”
SOURCE: Kalshi News – $1B Series F Round at $22 Billion Valuation (May 7, 2026)
Given Kalshi’s growth metrics, the sole area of concern for the company going forward appears to be its ongoing battle versus tribes and states. Kalshi, along with other prediction markets that offer event contracts on sports contests, are currently involved in multiple lawsuits brought by states that are attempting to enforce their own gambling laws on the company.
However, Kalshi currently has the federal government on its side, with the DOJ signaling an era of cooperation with digital asset builders and prediction market exchanges. The Commodity Futures Trading Commission (CFTC), chaired by Mike Selig, is also pursuing legal action against states that interpret the trading of event contracts as actual sports betting. The federal agency is claiming exclusive jurisdiction over prediction markets in its continuing legal disputes against the states of Illinois, Wisconsin, New York, Connecticut, and Arizona.
Earlier this week, US District Judge Michael T. Liburdi ruled that “federal law preempts state gambling laws” in the regulation of derivatives. The Arizona District Court ruling granted Kalshi injunctive relief within the state, but many legal experts believe the issue will eventually make its way to the US Supreme Court.
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