Kalshi confirms $1 billion raise at $22 billion valuation amid prediction market boom

Amid staggering growth, prediction markets have also drawn growing scrutiny from U.S. regulators and state authorities. Nevada, New Jersey, Illinois and several other states have issued cease-and-desist orders or launched legal challenges against Kalshi, arguing that some event contracts resemble unlicensed sports betting products. Kalshi has pushed back, saying its federally regulated exchange falls under the oversight of the Commodity Futures Trading Commission (CFTC) rather than state gambling regulators.