Kalshi in early IPO talks with investment banks: Report
Kalshi is reportedly in early informal talks with investment banks about a possible IPO after passing $2 billion in annualized revenue. The company recently doubled its valuation to $22 billion in a $1 billion Series F round led by Coatue Management. The IPO talk comes amid rising legal and regulatory pressure on prediction markets, especially sports-related contracts. Sports betting contracts make up more than half of Kalshi’s weekly notional trading volume, and similar markets are also dominant on Polymarket. Kentucky recently sued Kalshi and four other prediction markets, alleging they run unlicensed illegal sports betting platforms. At least 17 states have brought similar cases. States argue these contracts require state gambling licenses, while prediction market firms say the contracts are federally regulated swaps under commodities law. The CFTC has also taken a more active role, including litigation over jurisdiction and a recent no-action letter easing some event contract reporting rules.
