Prediction-markets platform Kalshi raised $1 billion in a Series G round led by Sequoia Capital and Wellington Management, co-founder and CEO Tarek Mansour said in an interview with The New York Times. The financing values Kalshi at $40 billion — nearly double rival Polymarket’s valuation — and investors view it as a potential final major round before an initial public offering.

Baillie Gifford, Morgan Stanley Investment Management, Coatue Management and Andreessen Horowitz also participated in the round. Kalshi’s previous funding round in May valued the company at $22 billion. Media reports that the company planned to raise more capital appeared a month ago.

“What it means to us is we get the resources and the capital to build all the things that are on our product road map that our customers, both retail and institutional, want us to build,” Mansour said.

Kalshi discusses potential IPO

Mansour said Kalshi has discussed the possibility of an initial public offering but did not specify when it might take place.

Preliminary filings submitted to the U.S. Securities and Exchange Commission indicated that Kalshi raised $1.12 billion through a private share placement from April to August 2026. The company offered investors $1.49 billion of securities and sold $1.12 billion. That amount included a $1 billion Series F round reported in May.

Kalshi’s popularity increased after it introduced sports contracts in early 2025. Analysts estimate that sports still account for about 80% of the platform’s trading volume, although other segments are also growing.

“Our revenue, outside of sports, is now over a billion dollars. Crypto has been growing faster than sports. Commodities have been growing faster than crypto,” Mansour said.

State legal disputes continue

Kalshi continues to face legal challenges despite its higher valuation. Attorneys general in several U.S. states argue that contracts tied to event outcomes, including sports contracts, are effectively gambling and should be regulated under state law. Kalshi maintains that its activities fall under federal oversight by the Commodity Futures Trading Commission.

Courts in different states have issued inconsistent rulings. New Jersey has asked the U.S. Supreme Court to determine whether federal law preempts state rules governing sports contracts on prediction markets. Nevada and Washington have already secured restrictions on such contracts in their jurisdictions.

Mansour said Kalshi complies with the federal regulator’s requirements: “They invested in a company that does everything by the rule. We’re abiding by that regulator. The decisions are going to come from the courts, and whatever the decisions are.”

Kalshi’s investors view the regulatory disputes as an expected risk. Wellington Management has said prediction markets provide people and companies with new ways to express market views and manage risk.

Mansour has previously warned that prediction markets could leave the U.S. because of regulatory issues.

Disclaimer: This material is for informational purposes only and is not advertising for gambling or a call to participate in it. Any mention of Polymarket is made solely within the context of a digital asset market overview and is not intended to popularize or promote the platform.

Source: Incrypted