Kalshi reportedly secures $1 billion funding at $22 billion valuation

Kalshi has reportedly raised about $1 billion in a new financing round led by Coatue Management, doubling the company’s valuation to $22 billion in a matter of months. The development comes as prediction market operators continue to attract investor interest despite ongoing legal disputes in the United States.

The funding follows earlier reports that Kalshi and rival Polymarket were both seeking fresh capital at valuations of at least $20 billion. News of the latest round was first reported by The Wall Street Journal. 

The company’s rapid increase in valuation has been driven by successive capital raises over a short period. About nine months ago, Kalshi raised $185 million at a $2 billion valuation. The round drew backing from Sequoia Capital, Multicoin, Neo, Bond Capital, and Citadel Securities CEO Peng Zha.  

A subsequent $300 million round in October 2025 pushed the valuation to $5 billion. Two months later, another $1 billion raise lifted it to $11 billion. The latest financing has now doubled that figure again.

The surge in valuation has occurred even as Kalshi faces legal challenges at the state level. A day before reports of the new funding emerged, Arizona Attorney General Kris Mayes filed a 20-count criminal complaint against the company, alleging it is illegally offering political and sports event contracts in the state.

Arizona has become the first U.S. state to bring criminal misdemeanor charges against a prediction market operator, escalating tensions between state regulators and the emerging sector.

Prosecutors allege the platform offered contracts tied to events such as professional and college sports, the 2028 U.S. presidential election, and several Arizona races scheduled for 2026, including the gubernatorial contest, the Republican primary, and the secretary of state race.

Kalshi CEO and co-founder Tarek Mansour

Kalshi CEO and co-founder Tarek Mansour criticized the action. “If this were about consumer protection, the state would focus on the predatory practices of the gambling industry’s addiction-driven business model. Instead, a regulated exchange is being targeted to protect incumbents and prevent consumers from choosing,” he said on X.

"But we have close to 400k customers in Arizona, about 5% of the state’s population, and growing, and we will fight for them. We will not be intimidated, and we will keep building."

The rule of law applies to everyone - including state governments.

The Arizona Attorney General’s charges are baseless and a clear overreach. It’s gamesmanship from a politician who’s up for reelection.

The charges claim that putting money on “a contingent future event or… https://t.co/TU4I8HV1CT

— Tarek Mansour (@mansourtarek_) March 18, 2026

Investor participation in the latest round indicates confidence in the prediction market sector, even as regulatory questions remain unresolved. Coatue Management’s involvement appears to be its first direct investment in Kalshi and its first known exposure to a dedicated prediction market operator. The firm has previously invested in brokerage platform Webull, which offers event contracts through a partnership with Kalshi.

The company’s valuation now exceeds that of several listed sports betting operators. At $22 billion, Kalshi is valued $3.34 billion more than Flutter Entertainment and $9.54 billion more than DraftKings. 

Meanwhile, Massachusetts, Nevada, and Michigan have pursued civil actions to prevent Kalshi from offering sports event contracts. A Massachusetts judge has issued an injunction blocking such offerings, though the ruling is currently on hold pending appeal.

Early this month, Ohio denied Kalshi’s request for a preliminary injunction against state regulators, ruling that the company must comply with state gambling laws.