Kalshi hits $40bn valuation as Utah files criminal charges
A $1bn funding round values the prediction platform at $40bn even as Utah brings 13 criminal charges and European regulators weigh in on its sports contracts.
Prediction platform Kalshi has reached a $40 billion valuation following a $1 billion Series G funding round, even as legal and regulatory challenges to its sports event contracts in the United States continue to build.
The round was co-led by Wellington Management and Sequoia Capital, with a range of other asset managers also taking part, according to SBC News.
Speaking on the iGaming Daily podcast, SBC News journalist Patrick Killeen set out the scale of the deal, while SBC News Editor Ted Orme-Claye linked the raise to Kalshi's broader expansion into financial services. Orme-Claye pointed to the timing, coming days after Kalshi struck a partnership with S&P Dow Jones.
That commercial momentum sits alongside a difficult legal picture. Utah has become the latest state to take action against Kalshi, filing 13 criminal charges against the company and its co-founders.
It follows a similar case in Arizona in March, where the state's Attorney General filed misdemeanour charges against Kalshi over its continued offering of event contracts.
The pressure is not confined to the US. Killeen noted that Kalshi's Chief Risk Officer has confirmed the company is in talks with the European Securities and Markets Authority and other regulators, as it seeks favourable treatment under European rules. Killeen cautioned that this process could take a long time to play out.
The discussion also turned to IG Group's application for a Gambling Commission licence in the UK. The firm plans to launch to professional investors later this year, with a sportsbook product following in early 2027.
Orme-Claye argued that investors backing Kalshi at this valuation are effectively betting on consumer demand for its products, asking who would take over its customer base if a regulator or court forced the market to close.
Horner struck a more cautious note, pointing out that sports contracts made up around 90% of Kalshi's trading volume in 2025 and that a Supreme Court ruling on the legality of such contracts still looms over the business. He suggested that a 2027 initial public offering, as some have floated, could prove overly optimistic given the unresolved legal questions.