Kalshi Is Eyeing an IPO — and It’s Growing Faster Than Anyone Expected

TLDR

• Kalshi is in early talks with investment banks about a potential IPO
• The platform has surpassed $2 billion in annualized revenue
• Kalshi raised $1 billion in May at a $22 billion valuation
• Monthly trading volume hit $16.81 billion in May, beating rival Polymarket
• Multiple states have filed lawsuits against Kalshi over unlicensed gambling claims

Prediction market platform Kalshi has begun early, informal talks with investment banks about a potential initial public offering, according to a report from The Information.

The discussions are preliminary and non-binding. Kalshi declined to comment when contacted by reporters.

The company has crossed $2 billion in annualized revenue. That is up from the $1 billion annualized run rate reported by the Wall Street Journal back in March.

The growth comes just weeks after Kalshi closed a $1 billion Series F funding round in May. That round valued the company at $22 billion and was led by Coatue, with backing from Sequoia Capital, Andreessen Horowitz, Paradigm, Morgan Stanley, and ARK Invest.

Kalshi Leads Prediction Market Volume

Kalshi and rival Polymarket are the two dominant platforms in the prediction market space. In May, Kalshi recorded $16.81 billion in monthly volume, up from $14.81 billion in April.

Polymarket posted $7.08 billion in volume last month, down from $9.01 billion in April.

The gap between the two platforms has been widening. Kalshi has now pulled well ahead in monthly trading activity.

Legal and Regulatory Pressure Grows

The platform’s rapid growth has not come without friction. Kentucky became the latest state this week to file a lawsuit against Kalshi, Polymarket, and related entities.

The lawsuits allege the platforms are operating unlicensed, illegal sports betting and gambling services. Many other states have filed similar actions.

Gaming industry groups added to the pressure earlier this week. A letter sent to the Senate urged lawmakers to include language in crypto market structure legislation that would explicitly ban prediction markets tied to sports and casino-style wagering.

Federal regulators see things differently. The Commodity Futures Trading Commission has maintained that prediction markets fall under its exclusive oversight under the Commodity Exchange Act.

The CFTC has gone so far as to sue multiple states that have tried to restrict these platforms.

The tension between state and federal authority over prediction markets remains unresolved. That legal uncertainty is the backdrop against which Kalshi is now exploring a public listing.

No timeline for an IPO has been reported. The talks are described as early and informal.

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