Rumors Say Polymarket Considers $9B Valuation While Kalshi Targets $5B

Polymarket and Kalshi, two leading platforms in the prediction market space, are reportedly pursuing new funding rounds at valuations of $9 billion and $5 billion, respectively, marking a huge growth compared to just relatively recently.

Polymarket and Kalshi Eye Multi-Billion-Dollar Valuations

According to The Information, Polymarket has received offers valuing the company as high as $9 billion, which is a significant jump from its $1 billion valuation during a raise earlier this summer. Meanwhile, Business Insider reported that at least one investor has proposed a term sheet valuing Polymarket at $10 billion. In the meantime, Kalshi is reportedly close to securing a new funding round at a $5 billion valuation. That’s more than twice the $2 billion valuation from its previous raise just a few months ago. This increase indicates that investors are wagering on the potential for regulated prediction markets to become widely adopted.

This information comes after there’s been a significant shift in the predictions market scene in the US over the past few weeks. One major change on the horizon is that Polymarket will relaunch in the US after being inactive for more than three years.

Polymarket has also gained support from politically connected investors. Donald Trump Jr.’s venture capital firm, 1789 Capital, made an investment worth tens of millions of dollars, and Trump Jr. has joined the company as an advisor. However, the move was not without its fair share of controversy as Trump Jr. also serves as a strategic adviser to Kalshi. Some have thus raised concerns about both platforms’ political influences, as well as called into question the potential for a clash of interests in the prediction market fields.

What Challenges Does This Growth See?

Similar to the early days of the online sports betting boom, private market investors are showing strong enthusiasm for prediction market operators, which are increasingly coming into competition with the sports wagering industry. A significant part of this excitement stems from prediction markets’ connection to cryptocurrency, a feature that regulated sportsbooks do not have.

This has sometimes led to clashes between the prediction market providers and other operators that offer betting services. Kalshi has often been at the center of various complaints and lawsuits from both private and state organizations. Most recently, Massachusetts has launched a civil lawsuit against Kalshi, with the state claiming the company essentially runs licensed sports betting.

However, it seems that prediction markets and the way they offer their products have also been controversial with the average consumer base as well. For example, a recent report by the American Gaming Association (AGA) showed that the majority of people think prediction markets should be regulated.