Prediction platform Kalshi has secured a $40 billion valuation after a $1 billion Series G round, despite mounting legal and regulatory pressure over its sports event contracts in the US.
Sitting down on iGaming Daily, host Charlie Horner was joined by SBC News Editor Ted Orme-Claye and SBC News journalist Patrick Killeen to unpack what is driving investor confidence and what it means for prediction markets.
Killeen began by going over the deal. The round was co-led by Wellington Management and Sequoia Capital, with a wide range of asset managers also taking part. Orme-Claye linked the raise to Kalshi’s push into wider financial services, noting it came days after a partnership with S&P Dow Jones.
But despite these wins, the legal picture for Kalshi still remains difficult.
Utah has become the latest state to act against the prediction platform, filing 13 criminal charges against the company and its co-founders. Kalshi faced a similar suit in Arizona in March, with the state’s Attorney General filing misdemeanour charges against the platform for its continued offering of event contracts.
And the trouble for Kalshi doesn’t stop at home.
In Europe, Killeen highlighted how Kalshi’s Chief Risk Officer confirmed they were in talks with ESMA and other regulators, as the platform continues to push positive legislation. Killeen warned however that this could be a long process.
The group also discussed IG Group, and its application for a Gambling Commission licence in the UK. They plan to launch to professional investors later this year, with a sportsbook product in early 2027.
Orme-Claye argued investors are betting on consumer demand, asking who would capture Kalshi’s users if a regulator or court shut the market down. Horner, however, was more cautious, noting that sports made up around 90% of Kalshi’s volume in 2025 and that a Supreme Court ruling looms.
He suggested a 2027 IPO could prove over-optimistic.
Watch the full episode here.
