Kalshi's Valuation Surpasses Flutter and DraftKings Combined

Kalshi announced that it raised $1 billion in its Series G round on October 29. With the new investment, the company's valuation reached $40 billion. Wellington Management and Sequoia Capital led the round. The announcement came the day after the state of Utah filed criminal charges against the company and its co-founders over sports betting.

According to Utah's indictment, Kalshi and its founders face 14 charges. Twelve relate to online gambling promotion, one to a pattern of organized criminal activity, and one to a misdemeanor gambling promotion. At the center of the case are sports bets placed by a user named Scott Eggerman. Eggerman placed $114.87 on 12 bets and lost $25.10. The core of the dispute is whether federal oversight by the CFTC prevents Utah from enforcing its gambling laws.

Kalshi did not disclose how much of its revenue comes from sports. The company said its non-sports revenue exceeds $1 billion per year. That figure equals one-quarter of the roughly $4 billion annual pace Bloomberg reported for August. Based on this, about three-quarters of revenue appears to come from sports contracts. Kalshi also said its commodities business generated more than $100 million in annualized trading fees over three months.

Kalshi captured 75.7% of prediction market trading volume over 30 days. That means $91.7 billion of the total $121.2 billion in volume. With the new capital, the company plans to launch markets that depend on future computing costs and to grow in Latin America and Europe. CEO Tarek Mansour said the goal is to become "the next big financial exchange."