Kalshi secured $185m in Series C funding, valuing the company at $2bn post-money, the company said. Paradigm led the round, which also included Sequoia Capital, Multicoin Capital, Neo, Bond Capital and Peng Zhao; Kalshi said it would use the capital to expand engineering, infrastructure and broker integrations.
The raise provides Kalshi with capital for platform expansion and integrations with online brokers.
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Underdog filed a federal lawsuit against Connecticut officials after the state Department of Consumer Protection ordered it and eight other companies to stop offering or advertising sports-event contracts and let users withdraw existing funds. The company asked the court to block state enforcement, arguing that federal law gives the Commodity Futures Trading Commission authority over its event contracts; Connecticut officials say the contracts breach state gaming rules.
Connecticut’s Department of Consumer Protection ordered nine prediction-market platforms to stop offering sports event contracts to state residents, officials said. The orders also require the platforms to let Connecticut customers withdraw funds; non-compliance could bring civil or criminal penalties. The department said it issued subpoenas to licensed gaming service providers, media organisations and app-store or payment-related businesses, whose recipients are not under investigation.
ProphetX and Players' Lounge have partnered to offer sports prediction markets through the Players' Lounge platform. The companies said eligible users in supported US jurisdictions can trade contracts on sports events after Know Your Customer verification, using ProphetX's CFTC-regulated exchange infrastructure.
Kentucky Attorney General Russell Coleman announced that the state had sued Kalshi and Polymarket, alleging they offer sports-related event contracts without the licences required for gambling operators. The state also named Coinbase, Robinhood and Webull, while Polymarket said the action conflicts with the federal regulatory framework for prediction markets.
Kentucky Attorney General Russell Coleman said the state filed three lawsuits against VGW, Kalshi and Polymarket over alleged unlicensed gambling. The cases claim Kalshi and Polymarket offer sports-related contracts without state sports betting licences; the Kalshi action also names Coinbase, while the Polymarket case identifies Robinhood and Webull as affiliates.