Kalshi and Polymarket see first volume drop in a year

Kalshi and Polymarket's trading volume fell 14.5% in August to $45.33B, the first decline in a year after a World Cup surge. Regulatory scrutiny in the U.S. is also intensifying.

Kalshi and Polymarket saw their combined trading volume drop by 14.5% in August, totaling $45.33 billion. This marks the first month-over-month decline in a year, following a record July where volumes surpassed $50 billion, largely due to the FIFA World Cup. Kalshi led with $37.17 billion in August, while Polymarket and its U.S. platform contributed $8.16 billion. The decrease follows months of rapid growth fueled by major sporting events, especially the World Cup, which concluded in July. Despite the downturn, August volumes remain significantly higher than earlier in the year. Both platforms are now facing heightened scrutiny from U.S. state regulators over sports-related contracts, with more than a dozen states taking enforcement actions or filing lawsuits. Kalshi continues to expand in sports, recently partnering with the U.S. Tennis Association for the U.S. Open.