Prediction market platform Kalshi has raised more than $1 billion in a new funding round valuing the company at $22 billion - double its December valuation - with Coatue Management leading the deal.
The transaction comes the same week Arizona's attorney general filed 20 criminal misdemeanor charges against Kalshi, accusing it of running an illegal gambling operation and accepting election wagers from state residents.
The dual developments - an at-scale funding close alongside the first criminal prosecution of a prediction market platform - reflect the sector's rapid growth and equally rapid legal exposure.
Neither Kalshi nor Coatue confirmed the terms publicly.
Round Details and Revenue
The December 2025 round that established the prior $11 billion valuation was led by Paradigm, with participation from Sequoia Capital, Andreessen Horowitz, and ARK Invest.
Kalshi's annualized revenue run rate has since reached $1.5 billion, according to the Bloomberg source, up from a reported $600–700 million run rate disclosed to investors in November 2025.
The company's weekly trading volume has exceeded $1.87 billion in recent weeks, on par with Polymarket's $1.9 billion, per Dune Analytics data.
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Legal and Regulatory Context
Kalshi has contested Arizona's criminal charges, calling them "paper-thin" and arguing federal CFTC jurisdiction supersedes state gambling statutes.
That argument has produced mixed results across jurisdictions: a federal court in Tennessee temporarily blocked state regulators from enforcing a cease-and-desist against Kalshi, while an Ohio federal judge in March denied Kalshi's request for a preliminary injunction, finding the state's interest in regulating sports betting outweighed the company's operational concerns.
Kalshi has also filed preemptive lawsuits against Iowa, Utah, and Arizona.
CFTC Chairman Michael Selig has publicly backed the platform's jurisdictional position, issuing guidance on prediction markets and filing an amicus brief supporting Kalshi's operations in Nevada.
On Thursday, Selig co-signed a first-of-its-kind MOU with MLB establishing an integrity framework for baseball-related prediction markets - a development that further entrenches the CFTC's posture as primary regulator of the sector.
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