Leading prediction market Kalshi has reportedly hit a $22bn valuation in an ongoing investment round.
The eye-watering valuation, according to anonymous sources quoted in the Wall Street Journal, comes as part of a new $1bn financing round led by tech-focused investment company Coatue Management.
It marks the latest milestone in the meteoric rise of the Tarek Mansour-led business, with the $22bn total making the company worth more than Flutter Entertainment – operator of FanDuel and before now considered the world’s most valuable online gaming business.
In fact, the only gambling business with a larger market cap is Macau concessionaire and integrated resort giant Las Vegas Sands, worth approximately $36bn as of today (20 March).
If true, it also means Kalshi has doubled the previous $11bn valuation it achieved in 2025 in a matter of months, as prediction markets mania sweeps the US.
The news follows a previous WSJ report that both Kalshi and its largely offshore competitor Polymarket were seeking $20bn valuations in their latest investment rounds.
Good time for M&A spree?
The highly valued nature of both businesses’ equity has resulted in observers highlighting that now would be a good time for the companies to leverage that into M&A deals to solve some of their more obvious issues.
Sources have told nextpredict.io/ the platforms’ front-ends need work, as do their parlay-like product “combos”, which will need to become a lot smoother if they are to compete with DraftKings and FanDuels’ offerings.
Just last week, it was confirmed Polymarket had acquired decentralised finance company Brahma for an undisclosed sum, in a move to upgrade some of its crypto plumbing.
However, the heady valuations reportedly achieved by both Kalshi and Polymarket may raise eyebrows with some critics who suggest regulatory roadblocks could torpedo their loftier ambitions.
CFTC chair Michael Selig’s prediction market-friendly approach may not survive a Democratic presidency, and the Supreme Court could also significantly hinder the vertical in a decision.
While in those cases sports contracts – which make up approximately 75% of Kalshi’s volume – could be outlawed, the prediction markets themselves have argued their true opportunity lies in institutions using their platforms to hedge financial risks.