Kalshi has held preliminary discussions with investment banks regarding an IPO, after its annualized revenue exceeded $2 billion, doubling from March.
Kalshi has begun preliminary discussions with investment banks about a potential initial public offering, according to sources cited by The Information on Thursday.
Citing sources familiar with the matter, the news outlet reported that the company had held informal discussions about an IPO, and revealed that Kalshi had surpassed $2 billion in annualized revenue, a significant increase from the $1 billion figure reported by The Wall Street Journal in March. Kalshi declined to comment when contacted by The Block .
Discussions about the IPO are taking place against the backdrop of Kalshi's continued rapid expansion. The forecasting market platform raised $1 billion in its Series F Capital round in May, bringing the company's valuation to $22 billion. The Capital round was led by Coatue, with participation from Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley, and ARK Invest.
Kalshi and rival Polymarket remain the dominant players in the forecasting market, with Kalshi recording monthly volume of $16.81 billion in May, up from $14.81 billion in April, according to data from The Block. Meanwhile, Polymarket recorded volume of $7.08 billion in May, down from $9.01 billion the previous month.
Legal oversight is becoming increasingly stringent.
The prediction market sector is facing increasing political and legal scrutiny as it draws further attention ahead of this year's midterm elections. Earlier this week, groups in the US gambling industry sent a letter to the Senate, urging lawmakers to include in a crypto asset market structure bill a clear ban on sports-linked prediction markets and casino-style betting.
At the same time, Kentucky became the latest state to file a lawsuit against Kalshi, Polymarket, and related entities, alleging that these platforms operate illegal sports betting and gambling activities without licenses in the state, following similar moves from several other states.
The rapid growth of forecast markets has also intensified legal battles between the federal and state governments. While some states seek to restrict or ban these platforms, the U.S. Commodity Futures Trading Commission (CFTC) maintains that forecast markets fall under its exclusive oversight under the Commodity Exchange Act and has sued numerous states over attempts to restrict their operations.
