Kalshi pursues $40 billion valuation while battling Illinois lawsuit and expanding market bans

Kalshi, the U.S. CFTC‑regulated prediction‑market platform, is negotiating a new funding round that could value the company at roughly $40 billion, nearly double the $22 billion valuation of its May Series F raise. The push comes as monthly trading volume has climbed to over $17 billion, driven largely by sports contracts that now account for about 65% of activity.

The firm is simultaneously confronting regulatory headwinds. It has filed a federal lawsuit against Illinois, challenging a new state law that imposes a licensing requirement and a 15% tax on sports‑related prediction‑market wagers, arguing that the Commodity Futures Trading Commission holds exclusive jurisdiction. In addition, Kalshi added India to its list of 55 restricted jurisdictions after the Indian government warned VPN providers against facilitating access to “illegal and blocked” prediction‑market platforms. Similar bans have been enacted in Spain, Indonesia, Brazil and several other countries.

CEO Tarek Mansour confirmed that Kalshi is considering an IPO, but the company does not expect a public offering before 2027.