Kalshi Valued at $22 Billion After $1 Billion Funding Round

Kalshi’s valuation has shot up to $22 billion after a recent funding round led by investment group Coatue Management raised $1 billion for the prediction market operator.

Charlotte Capewell

Last Updated: March 23, 2026 3:05 PM EDT • 2 minute read

Pictured: A teller counts U.S. dollar banknotes as we look at the updated Kalshi valuation. Photo by REUTERS/Willy Kurniawan

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Prediction market platform Kalshi has been valued at $22 billion, after raising more than $1 billion in a new funding round, according to the Wall Street Journal. The round was led by investment company Coatue Management and follows a previous $1 billion raise in December, which valued the company at roughly $11 billion.

The valuation shows that investor interest in the fast-growing sector is as keen as ever, despite increasing regulatory scrutiny. Kalshi, founded in 2018 and based in New York, lets users trade contracts based on the outcomes of real-world events, including politics and sports. The platform is regulated by the Commodity Futures Trading Commission (CFTC).

Trading activity on the platform has surged in recent months. In February, volumes exceeded $10 billion, a significant increase compared with levels reported six months earlier. The company’s annualized revenue is also estimated at $1.5 billion.

However, prediction market apps are facing mounting legal challenges at the state level.

Regulators in several states have questioned whether some contracts, particularly those related to sports, fall under gambling laws. Courts in multiple states have been dealing with disputes between state regulators and the most prominent of the prediction market companies.

Recent developments include a federal appeals court decision allowing a temporary ban on Kalshi’s operations in Nevada to proceed, as well as criminal charges filed in Arizona alleging unlicensed gambling activity. The company has also disclosed internal investigations into insider trading, identifying multiple cases involving platform users.

Kalshi offers a $1 billion prize for March Madness

Despite growing legal problems, Kalshi’s expansion has not stopped, and as it enters this year’s March Madness NCAA Division I men’s basketball tournament, the company offered a $1 billion prize to anyone who correctly predicts the outcome of every game.

The challenge involved picking the winners of all 63 games in the tournament, and the probability of doing so is widely considered extremely low given the large number of possible outcomes. In fact, the odds of getting all 63 right could be as low as 1 in 9.2 quintillion.

The tournament's notorious unpredictability, with many surprise results, makes the task even harder.

Kalshi acknowledged the difficulty of the task, noting that no perfect bracket has been recorded. If no participant achieves the top prize, the company says it will award $1 million to the highest-scoring entry and give the additional funds to nonprofit organizations.

The contest came as millions of people across the US participate in bracket competitions each year, with significant wagering activity expected around the tournament.

Written by:
Charlotte Capewell

Charlotte’s love for all things iGaming shines through in everything she writes. From sports betting and U.S. legislation to prediction markets and beyond, she blends sharp analysis with storytelling that makes even the most technical topics come alive. Always chasing the next big scoop, Charlotte keeps a close eye on industry news, eager to share her excitement and insights with readers, whether they’re industry veterans or newcomers discovering iGaming for the first time. When she’s not deep in gaming headlines, you’ll probably find her glued to the F1, cheering on her favorite team, Williams, and driver. Her dream? To be trackside at the Las Vegas Grand Prix, notebook in hand, of course.