Kalshi CEO Speaks Out as Company Reaches $2 Billion Valuation

According to the company's Chief Executive Officer, Tarek Mansour, prediction markets company Kalshi has raised $185 million in a funding round that values it at $2 billion. The company CEO spoke to CNBC’s Squawk Box about the latest round of funding. 

“Kalshi is one of the fastest-growing companies in America. We 50x our user base last year. Our volume has grown around 100x, and the number of markets, just the sort of operation, has scaled 15x,”  he said. 

Prediction markets allow people to buy either side of a contract related to various political, sports, and entertainment events. The prediction market model has gained significant popularity in recent months, following a surge of interest in markets surrounding the US Presidential Election. They're quickly becoming a significant competitor to the best sportsbooks.

Mansour revealed that the prediction trading market had reached a $2 billion valuation following a $185 million funding round. Crypto-focused investor Paradigm led the funding, with additional participation from Sequoia, Multicoin, Neo, Bond Capital, and Peng Zhao, the Chief Executive Officer of Citadel Securities. Mansour also commented on the new evaluation on CNBC’s Squawk Box.

How Kalshi reached a $2 billion evaluation

Kalshi was founded in 2018 by Mansour and Luana Lopes Lara, MIT classmates. It made headlines last year after winning a court case against the Commodity Futures Trading Commission. That victory allowed it to list contracts tied to the 2024 U.S. presidential race and led to the launch of other prediction market operators, such as Robinhood, which debuted in March. 

Supporters argue that when it comes to politics, prediction markets offer a more reliable reflection of real-world sentiment than traditional polling, as they involve real money on the line. 

However, there has been sustained opposition to the prediction market model from those who argue that it is effectively gambling and that companies that offer these markets should be covered by the state gambling laws where they operate. 

Tribal gaming leaders slam Kalshi

Tribal gaming leaders are among the most vociferous critics of Kalshi and other gaming operators. For example, tribal groups in New Jersey have joined in support of a New Jersey lawsuit against Kalshi.  And this week, they have been pushing back against Kalshi’s claim to have had productive conversations with tribal organizations. 

This week, Victor Rocha, the chair of the Indian Gaming Association, said that conversations with Kalshi leadership were not fruitful, calling Mansour a “lying little twerp.” 

Polymarket nears $200 Million

Meanwhile, according to reports, a primary Kalshi rival, Polymarket, is close to completing a $200 million funding round at a $1 billion valuation. Peter Thiel’s Founders Fund is leading the round and includes $50 million in additional funding.

The funding round comes at a time when the site's traffic is booming. One report indicates that Polymarket drew 15.9 million website visits in May, more than leading betting companies such as FanDuel and DraftKings. 

The platform’s growth seems to have been fueled by election-related speculation, as roughly $8 billion in wagers were placed on Polymarket during the 2024 election campaigns. Some analysts estimate its predictive accuracy at 94%