The prediction market platform Kalshi has held preliminary talks with investment banks about a possible initial public offering (IPO). The company expects to go public no earlier than late 2027 — early 2028.

According to The Information, the discussions are informal in nature and at an early stage. The decision to consider an IPO is related to a sharp rise in financial indicators: Kalshi's annual revenue exceeded $2 billion, roughly three times the level of November 2025.

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Sport drives interest in Kalshi

In May 2026, the monthly trading volume on Kalshi reached $16.81 billion, adding 13.5% over April. The growth is linked to a surge of activity around the NBA markets and the FIFA World Cup (WC-2026). Recently the company also became a partner of the US National Hockey League (NHL).

In May, Kalshi raised $1 billion in a Series F round at a valuation of $22 billion. The round was led by the Coatue fund, and among the participants were Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley and ARK Invest. Since the start of 2025, the company has closed four major funding rounds.

The platform also launched CFTC-approved perpetual futures on bitcoin (BTC) and other crypto assets. This step drew criticism from the CME Group exchange, which believes such contracts should be regulated differently.

US states oppose prediction markets

The main risk for Kalshi is regulatory uncertainty. This week the state of Kentucky filed lawsuits against Kalshi and Polymarket over allegedly unlicensed sports betting. Similar documents were filed by representatives of Wisconsin, New York, Nevada and other states, and US gambling associations called on the Senate to include a ban on sports prediction markets in the Clarity Act bill.

Source: BeInCrypto