Kalshi has raised more than $1 billion in new funding,
valuing the prediction market platform at $22 billion, according to people
familiar with the matter.
The funding round comes amid a fresh setback in Nevada, where a state court imposed a 14‑day restraining order forcing the prediction market to stop offering sports, entertainment and election contracts while regulators press their case that it is operating as an unlicensed gambling operator.
Kalshi was temporarily barred by a judge from offering its prediction market contracts in Nevada, after state regulators said the company didn’t have a gaming license. https://t.co/in8URVlJWj
— Bloomberg (@business) March 20, 2026
The order, issued by Nevada’s First Judicial District Court after a federal appeals panel cleared the way for state enforcement to proceed, bars Kalshi from taking bets in the state at least until an April 3 hearing on the longer‑term status of prediction markets there.
Funding Led by Coatue
The Wall Street Journal reported that Coatue led the latest
investment, which follows a previous $1 billion round backed by Paradigm,
Sequoia Capital, Andreessen Horowitz, ARK Invest, and CapitalG. The round, led by Coatue Management, doubles the
company’s valuation from December, when it was worth about $11 billion.
Kalshi’s annualized revenue has reached about $1.5 billion,
with trading volume in February topping $10 billion—twelve times higher than
six months ago. The funding highlights continued investor interest in
prediction markets, despite political and regulatory challenges surrounding the
sector’s legality and oversight.
Keep reading: Polymarket Grabs Nearly 55% of Prediction Markets as Iran Bets Test CFTC Crackdown
The latest setback in Nevada underscores how exposed Kalshi
still is to state-level enforcement, even as investors mark it up to $22
billion.
In February, a panel of judges on the U.S. Court of Appeals
for the Ninth Circuit refused Kalshi’s emergency bid to pause civil action by
Nevada regulators, effectively clearing the way for the state to move ahead
with allegations that the CFTC-regulated platform is running unlicensed sports
betting under the guise of prediction markets.
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Legal experts say the ruling strengthens the hand of state
gaming boards in their clashes with federally supervised event-contract venues,
and it adds to a growing list of forums where Kalshi has struggled to convince
courts that commodity-derivatives rules preempt traditional gambling law.
Legal Scrutiny Mounts
Arizona’s attorney general this week filed criminal charges
accusing Kalshi of operating an illegal gambling business. The company denied
the claims, saying it remains compliant under federal rules. Kalshi operates as
a federally regulated exchange under the Commodity Futures Trading Commission, which allows it to offer event-based contracts nationwide.
An Ohio federal judge recently refused Kalshi’s request to
block state enforcement, saying Ohio’s power to regulate gambling outweighs the
company’s arguments about how its platform operates.
The Arizona case is the first time a state has brought
criminal charges against Kalshi. The move also pushes back against a growing
effort in Washington to put prediction markets under federal control alone,
widening the rift between U.S. regulators and state authorities.
CFTC Chair Michael Selig has taken a more aggressive stance,
ordering the agency to step into court fights and arguing that federal
derivatives law, not state gambling rules, should govern event contracts. He
portrays the string of state actions against Kalshi, Coinbase, Crypto.com and
Polymarket as part of a coordinated state-level campaign.
This article was written by Jared Kirui at www.financemagnates.com.
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