Online prediction marketplace Kalshi has raised more than $300 million at a $5 billion valuation as prediction markets enter the financial mainstream, according to a New York Times report on Friday.
The company will now allow users in more than 140 countries to place bets, marking its first major international expansion, according to the article.
Kalshi projects $50 billion in annualized trading volume this year, up from $300 million last year, and now holds more than 60% of the global market share, surpassing rival Polymarket.
The funding round was led by major investors including Sequoia Capital, Andreessen Horowitz, Paradigm, CapitalG and Coinbase Ventures, the New York Times said.
The growth has been driven by sports betting, particularly parlays, putting pressure on sportsbooks like DraftKings (DKNG) and FanDuel Group, the report notes. Kalshi has also integrated with platforms like Robinhood (HOOD) and Webull (BULL) to make event trading more accessible.
Still, regulatory scrutiny remains a challenge, according to the article. After clearing a federal hurdle with the US Commodity Futures Trading Commission (CFTC) earlier this year, Kalshi now faces lawsuits from several US states accusing him of circumventing sports betting laws.
Read more: Massachusetts Attorney General Alleges Kalshi Violates Sports Betting Laws
