Washington State Judge Issues Injunction Against Kalshi
State judge orders Kalshi to stop offering sports bets and other wagers.
— Ars Technica
A Washington state judge issued a court order directing prediction market platform Kalshi to immediately cease offering sports bets and related event contracts to users within the state.
Your sports betting is obviously illegal.
— Gizmodo
The ruling determined that Kalshi’s event-based contracts tied to athletic outcomes function as sports gambling under state law, operating outside the authorized regulatory and licensing framework established for sports wagering in Washington.
Federal Court Validates State Authority in Connecticut
Federal judge: Connecticut can impose sports betting rules on Kalshi.
— NBC Connecticut
In a parallel legal decision, a federal judge ruled that state regulators in Connecticut hold the legal right to enforce state sports betting rules and licensing demands on Kalshi.
The federal court rejected arguments that Commodity Futures Trading Commission (CFTC) oversight grants complete federal preemption over state-level sports gambling enforcement.
Baltimore Sues Kalshi and Polymarket Over Unlicensed Gambling
Baltimore sues Kalshi and Polymarket for offering unlicensed sports betting.
— NBC Sports / ProFootballTalk
Expanding legal actions beyond state enforcement agencies, the City of Baltimore filed a lawsuit targeting both Kalshi and Polymarket. The action claims both platforms operate unlicensed sports betting services that bypass local gaming regulations, consumer protection mechanisms, and tax obligations.
Legal Summary: Prediction Markets Under Pressure
| Jurisdiction / Entity | Action Taken | Legal Determination |
| Washington State | Court Order Issued | Injunction halting sports wagers and unauthorized contracts |
| Connecticut | Federal Court Ruling | State holds legal authority to enforce sports betting rules |
| City of Baltimore | Municipal Lawsuit | Civil suit against Kalshi and Polymarket for unlicensed sports betting |
Kalshi Stock & Valuation: Inside the Prediction Market’s $11B Rise
While Kalshi stock isn’t publicly traded, the prediction exchange recently hit an $11 billion valuation backed by Paradigm, Sequoia, and Andreessen Horowitz.
Is Kalshi a Publicly Traded Company?
Kalshi is a Private company.
— PitchBook
Kalshi seeks to build the largest financial exchange on the planet. The derivatives market is enormous — it covers $1 quadrillion by some estimates.
— Kalshi Corporate
The $11 Billion Valuation and Private Equity Growth
Kalshi today announced a Series E funding round of $1 billion at an $11B valuation. The round was led by Paradigm, with participation from Sequoia, Andreessen Horowitz, Meritech Capital, IVP, ARK Invest, Anthos Capital, CapitalG, and Y Combinator.
— Kalshi News (December 2025)
As the lead investor in Kalshi Inc.’s $30M Series A round, Sequoia brought deep fintech expertise and credibility to the company’s mission… Henry Kravis, co-founder of KKR, is a high-profile private equity figure whose investment in Kalshi underscores confidence in the startup’s disruptive approach to event trading.
— Exa Financial Data
Kalshi Funding History & Cap Table Milestones
| Funding Round | Date | Amount Raised | Lead Investors / Participants | Post-Money Valuation |
| Series E | December 2025 | $1 Billion | Paradigm, a16z, Sequoia, ARK Invest | $11 Billion |
| Series C | June 2025 | $185 Million | Paradigm | $2 Billion |
| Series A | February 2021 | $30 Million | Sequoia Capital, Charles Schwab | $9.1 Million |
| Seed | May 2019 | $2 Million | Y Combinator | Undisclosed |
Trading Event Contracts Instead of Traditional Shares
Think of it as a stock exchange, but instead of trading company shares, you’re trading contracts on whether specific events will happen. As news and data break (jobs numbers, inflation reports, or injury news), prices update in real time, letting you act on new information with clear risk and a fixed payoff.
— Ledger Academy
Prices range from $0.01 to $0.99, reflecting how likely the market thinks an event is to happen. Prices move as predictions shift, right up until the contract expires. And you’re free to buy in or sell out at any time to lock in gains or cut losses—just like trading a stock.
— Kalshi Corporate
The New York Stock Exchange (NYSE) and Kalshi both deal in markets, but with a key difference: what is being traded. The NYSE is a traditional stock exchange where you buy and sell shares of ownership in companies. Kalshi, on the other hand, is a prediction market. Here, you trade contracts based on whether specific events will happen.
— Kalshi Help Center
Leo Falsafi is a digital marketing veteran and senior journalist at Virlan.co, where he covers the intersection of digital marketing, gaming, and breaking US trending news. With nearly two decades of hands-on experience in SEO and digital strategy, Leo has consulted for and scaled hundreds of companies. His deep industry roots allow him to deliver sharp, fact-checked insights and analysis on the trends shaping today's digital landscape.