Kalshi Faces Investor Test at $40 Billion Valuation

Prediction market platform Kalshi has reached a $40 billion valuation following a $1 billion Series G funding round. Wellington Management and Sequoia Capital co-led the round, and a number of asset managers also took part in the investment. SBC News editor Ted Orme-Claye linked the investment to Kalshi's expansion into financial services. The investment came a few days after a partnership with S&P Dow Jones was announced.

The company's legal position remains difficult. The state of Utah became the latest state to sue the company and its co-founders, bringing 13 criminal charges. Kalshi also faced a similar case in Arizona in March, when the state Attorney General filed misdemeanor charges over the event contracts the platform offered.

In Europe, Kalshi's Chief Risk Officer confirmed that the company has been holding talks with ESMA and other regulators. Patrick Killeen warned that this process could take a long time.

The discussion also covered IG Group's license application to the UK Gambling Commission. The company plans to launch a service for professional investors this year and to introduce a sports betting product in early 2027.

Orme-Claye asked what would happen to Kalshi's users if a regulator or court shut down the market, and whether investors were betting on consumer demand. Charlie Horner took a more cautious view. Horner noted that around 90 percent of Kalshi's volume in 2025 came from sports, and that a Supreme Court decision is approaching.