Prediction market platform Kalshi has reached a valuation of $40 billion after completing a $1 billion Series G funding round. According to a Reuters report, investment management firm Wellington Management and venture capital firm Sequoia Capital co-led this latest fundraising round.
The closing of the Series G round confirms funding plans first reported in September 2026 at the same valuation benchmark. The fresh capital injection comes amid a surge in user trading activity across the prediction market.
Two contrasting realities are now unfolding: Kalshi’s valuation is soaring in capital markets, while its operations are caught in state-level legal battles.
Surge in Non-Sports Revenue and Trading Volume
Activity on the platform indicates a shift in user interest beyond sports betting. A report by The Wall Street Journal revealed that Kalshi’s annualized revenue run rate from non-sports markets has now surpassed $1 billion. This annualized figure is driven by high transaction frequency in social and economic event-based contracts.
In terms of market liquidity, DefiLlama analytics data shows Kalshi registered roughly $15.8 billion in trading volume over the past 30 days. That multi-billion-dollar turnover places Kalshi among the most heavily traded prediction market platforms today.
Official NBA and S&P Dow Jones Indices Partnerships
Alongside capital backing from Wellington and Sequoia, Kalshi has expanded institutional partnerships across multiple sectors. Earlier this week, the NBA officially named Kalshi, along with rival exchange Polymarket, as official prediction market partners of the league.
Expansion into traditional finance is also underway through a collaboration with S&P Dow Jones Indices. The partnership integrates benchmark financial indices into prediction-based event contracts traded by users on the Kalshi platform.
$114 Undercover Bet Leads to 14 Criminal Charges
Amid its rapid business expansion, Kalshi faces an escalating domestic legal battle. Prosecutors in Utah have filed 14 criminal charges against Kalshi and its founders over illegal gambling allegations. The criminal proceedings stemmed from a single undercover bet worth just $114.
The action by Utah law enforcement has sparked a jurisdictional dispute with federal authorities in Washington. The Commodity Futures Trading Commission (CFTC), a federal regulator, filed a countersuit against Utah law enforcement to defend federal jurisdictional authority over Kalshi’s event-based derivative contracts.
For prediction market participants, the clash between Utah prosecutors and the CFTC underscores unresolved regulatory boundaries in the US. While the $1 billion cash injection gives Kalshi robust expansion capital, the operational certainty of its founders now hinges on criminal proceedings in a Utah court.
Reported by Cointelegraph.
Also read: How to Read Candlesticks for Beginners
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