Kalshi's $300M Surge Sparks Regulatory Clash in Global Prediction Market Push

Kalshi, a U.S.-regulated prediction market platform, has secured $300 million in Series D funding, valuing the company at $5 billion as it expands globally. The round was co-led by Andreessen Horowitz (a16z) and Sequoia Capital, with participation from Paradigm, Coinbase Ventures, and other prominent investors Kalshi hits $5 billion valuation amid international expansion^[1]. This marks a significant increase from its $2 billion valuation in June 2025 and underscores the growing institutional interest in prediction markets as a financial asset class Kalshi Raises $300M at $5B Valuation Under CFTC Oversight: Report^[2]. The funding will enable Kalshi to launch its platform in over 140 countries, creating a unified global liquidity pool for event trading-a structure unique to Kalshi compared to fragmented regional competitors Kalshi’s Valuation Reaches $5 Billion with New Funding^[3].

The expansion follows rapid growth: Kalshi's annualized trading volume is projected to reach $50 billion in 2025, up from $300 million in 2024, and the platform now accounts for over 60% of global prediction-market activity, surpassing rival Polymarket Prediction Market Kalshi Hits $5B Valuation After Massive $300M ...^[4]. This dominance is attributed to Kalshi's integration with mainstream financial platforms like Robinhood and Webull, which have simplified access to event trading for retail investors Kalshi Starts Global Expansion With New $300M Raise^[5]. The company's foray into sports betting, including parlays and player props, has further disrupted traditional sportsbook operators, contributing to a 200× surge in trading volume since 2023 Kalshi Valued at $5 Billion, as Prediction Market Rivalry with ...^[6].

Kalshi's global rollout faces regulatory scrutiny, particularly in U.S. states where sports betting remains restricted. Lawsuits in Texas and California allege the platform circumvents gambling laws by operating under CFTC oversight Prediction Markets Rise: Kalshi, Polymarket Test Future of Finance^[7]. CEO Tarek Mansour has defended the model, emphasizing that prediction markets differ from traditional betting by functioning as regulated financial instruments Prediction Market Kalshi Valued at $5B - CoinDesk^[8]. Meanwhile, the company's expansion into 140+ countries excludes jurisdictions such as Canada, France, and China Taiwan, where local regulations or legal challenges have restricted access Kalshi Hits $5b Valuation, Announces Major International Expansion^[9].

The prediction market sector is witnessing intensified competition. Polymarket, Kalshi's primary rival, recently secured a $2 billion investment from Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, at a $9 billion valuation Prediction Market Kalshi's Valuation More Than Doubled to $5B in …^[10]. Both platforms are reshaping the landscape of event-based trading, with Kalshi's global liquidity pool and Polymarket's U.S. re-entry expected to drive further innovation and regulatory debate Prediction Markets Rise: Kalshi, Polymarket Test Future of Finance^[11].

Kalshi's growth trajectory highlights the maturation of prediction markets from niche experiments to mainstream financial tools. Analysts note that these platforms enable traders to hedge risks and price real-world events with unprecedented liquidity, positioning them as a critical component of 21st-century financial infrastructure Kalshi hits $5 billion valuation amid international expansion^[1]. As Kalshi and competitors scale, their ability to navigate regulatory frameworks while maintaining compliance will determine their long-term viability in a rapidly evolving market.