Kalshi surpasses $2B revenue, eyes IPO amid legal scrutiny

Kalshi surpassed $2B in annualized revenue and is in early IPO talks. Growth is fueled by sports trading, but legal and regulatory challenges persist.

Prediction market platform Kalshi has exceeded $2 billion in annualized revenue and is in early, informal talks with investment banks about a potential initial public offering (IPO). The company’s rapid growth is driven by increased trading activity, especially around major sporting events like NBA games and the World Cup. This surge pushed monthly trading volumes to nearly $17 billion in May, surpassing its main competitor. In May, Kalshi completed a $1 billion Series F funding round, raising its valuation to $22 billion. Despite these financial achievements, Kalshi faces legal challenges, including lawsuits in several states over unlicensed gambling claims and regulatory scrutiny from both state and federal authorities. The IPO discussions are still preliminary and non-binding, with Kalshi declining to comment further on the matter.