Kalshi Explores IPO as Revenue Hits $2 Billion Annualized

Prediction market Kalshi is exploring an IPO after its annualized revenue surpassed $2 billion, driven by sports contracts. The company, valued at $22 billion following a recent $1 billion funding round, is in early talks with banks. However, it faces significant regulatory headwinds, with at least 18 states suing the platform over alleged illegal sports betting, creating a jurisdictional clash with the federal CFTC.

IPO exploration timeline

• ▪A spokesperson for Kalshi declined to comment on the IPO discussions
• ▪A public listing for Kalshi is not expected before late 2027 or early 2028
• ▪Prediction market Kalshi has begun early, informal discussions with investment banks about a potential initial public offering (IPO)
• ▪As part of IPO talks, Kalshi is asking prospective bank advisers to integrate with its platform to give their institutional clients direct trading access

Revenue surge from sports

• ▪Sports betting contracts account for approximately 53% of Kalshi's weekly notional trading volume
• ▪Sports contracts are a primary driver of Kalshi's revenue, with the NBA playoffs and FIFA World Cup cited as recent catalysts for growth
• ▪Kalshi's annualized revenue has surpassed $2 billion, up from a $1 billion run rate in March and triple its November 2025 figure

Trading volume growth

• ▪Kalshi's institutional trading volume increased by 800% in the six months leading up to early May
• ▪Kalshi's monthly trading volume reached $16.81 billion in May, an increase from $14.81 billion in April

Fundraising rounds completed

• ▪In May 2026, Kalshi raised $1 billion in a Series F funding round led by Coatue, reaching a valuation of $22 billion
• ▪Investors in Kalshi's Series F round included Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley, and ARK Invest

Regulatory challenges across states

• ▪The Commodity Futures Trading Commission (CFTC) asserts it has exclusive oversight of prediction markets and has sued several states attempting to restrict them
• ▪Kentucky recently sued Kalshi, joining at least 17 other states that have taken legal action against prediction markets for alleged illegal sports betting
• ▪U.S. gaming industry groups have asked the Senate to include language in crypto legislation that would ban prediction markets on sports
• ▪A New Jersey court ruled in favor of Kalshi in April 2026, permitting the platform to offer sports contracts in the state