Kalshi: The Regulated Prediction Market Exchange

What Is Kalshi?

Kalshi is a CFTC-regulated financial exchange launched in July 2021. The Manhattan-based platform lets users trade event contracts on real-world outcomes and is valued at over $2 billion as of 2025 Source 6.

How Kalshi Works

Users buy and sell contracts priced between 1¢ and 99¢, with prices reflecting crowd-sourced predictions Source 4. The peer-to-peer model means traders take the opposite side of each other’s positions rather than facing a traditional “house” Source 7.

Market Categories and Activity

The platform covers politics, sports, crypto, weather, news, and cultural events, with a centralized marketplace displaying live odds and forecasts Source 2. Sports betting accounts for more than 90% of platform activity Source 3.

Revenue Model and Regulation

Kalshi generates revenue through trading fees and bid-ask spreads Source 6. It remains the only federally regulated prediction market in the United States.

Legal Challenges

Kalshi currently faces 19 federal lawsuits, with its partnerships with major news outlets under scrutiny Source 5.

FAQ

How do I get started trading on Kalshi?
Create an account, complete verification, fund your account, and begin trading Yes/No contracts on available events Source 9.

Is Kalshi legal in the United States?
Yes, Kalshi is the only CFTC-regulated prediction market, making it legal for U.S. users.

What happens if I correctly predict an event outcome?
A “Yes” contract resolves at 100¢ and a “No” contract at 0¢, so profit equals the difference between purchase price and settlement value.

Can I trade on sports events through Kalshi?
Yes, sports betting represents over 90% of Kalshi’s trading volume.

How does Kalshi differ from Polymarket?
Kalshi is CFTC-regulated and offers financial incentives to active traders, while Polymarket operates in a different regulatory environment Source 8.

Are there fees for trading on Kalshi?
Kalshi charges trading fees and earns revenue through bid-ask spreads.