USA
- Prediction markets are heating up as Kalshi reaches a $2 billion valuation and Polymarket nears unicorn status, driven by record funding and surging volumes in geopolitical and economic betting.
- FanDuel reportedly explores a partnership with Kalshi to bring federally regulated event trading to millions of users nationwide, sidestepping state restrictions.
- DraftKings launches a corporate PAC to bolster lobbying efforts as lawmakers intensify scrutiny over sports betting, advertising, and antitrust concerns.
- The American Gaming Association debuts the Play Smart Consumer Hub, providing players with practical tools and resources to foster responsible gambling habits nationwide.
Prediction Markets Boom: Kalshi Hits $2 Billion Valuation, Polymarket Eyes Unicorn Status
Prediction markets are attracting record investment as Kalshi and Polymarket close major funding rounds to fuel growth.
Kalshi announced a $185 million Series C funding round led by Paradigm, which pushed the US-regulated event trading platform to a $2 billion valuation. Backers included Sequoia, Multicoin, Bond, Neo, and Citadel Securities CEO Peng Zhao. The funding follows Kalshi’s landmark court victory against the CFTC, clearing the way for the launch of election betting contracts. CEO Tarek Mansour reported a 100-fold surge in trading activity over the past year, with plans to scale technology and broker integrations.
Meanwhile, decentralized rival Polymarket is nearing a $200 million raise led by Founders Fund, which would value it above $1 billion. Polymarket, founded in 2020, has seen explosive growth in geopolitical and economic prediction trading despite remaining off-limits to U.S. users. In May alone, the platform drew nearly 16 million visits, outpacing traditional sports betting platforms.
With Robinhood launching its prediction hub and volumes accelerating, the sector appears poised for mainstream adoption. Investors see parallels with the early days of crypto, betting that prediction markets will evolve into a multi-trillion-dollar asset class.
FanDuel Eyes Kalshi Partnership to Expand into Prediction Markets
Following Kalshi’s $185 million funding round, sportsbook giant FanDuel is reportedly in talks with the platform to bring federally regulated prediction markets to its customers nationwide.
Kalshi operates under CFTC oversight, enabling it to offer markets in all 50 states, including major untapped regions such as California and Texas. A partnership could enable FanDuel to offer trading on elections, pop culture, and macroeconomic events, extending far beyond traditional sports wagering.
Flutter Entertainment CEO Peter Jackson confirmed during Q1 earnings that the group is exploring the opportunity. For Kalshi, access to FanDuel’s 12 million active users would boost liquidity as it expands beyond politics and finance.
Legal questions remain. Kalshi has received cease-and-desist letters from states like New Jersey and Maryland, sparking lawsuits over whether state regulators can override federal approval. So far, federal courts have backed Kalshi, but further challenges are likely to arise. Kalshi co-founder Tarek Mansour says the platform will comply only with the CFTC: “If the CFTC tells us to stop, we will absolutely stop. If they don’t, then we won’t.”
DraftKings Launches PAC as Regulatory Pressure Mounts
DraftKings has formed a new corporate political action committee, joining a small circle of gambling firms with federal PACs. The DraftKings Inc. Political Action Committee will be led by Lauren Pfingstag Vahey, the company’s senior director of federal affairs, and Griffin Finan, senior vice president and deputy general counsel.
The move comes as lawmakers increase scrutiny of sports betting, which has grown into a $150 billion industry across 38 states. Recent developments include Illinois’ new per-transaction tax, which has triggered a backlash and led to new fees for bettors, as well as calls from federal lawmakers to investigate DraftKings and FanDuel for possible antitrust violations.
DraftKings has previously spent heavily on lobbying and contributed more than $500,000 in in-kind donations to political causes. The new PAC will likely play a central role in defending the company’s interests as Congress debates stricter regulations, such as the SAFE Bet Act, which aims to tighten advertising and consumer protection rules.
AGA Unveils Play Smart Hub to Promote Responsible Gambling
The American Gaming Association has launched the Play Smart Consumer Hub, a new online platform offering tools and resources to help players gamble responsibly. The hub expands on AGA’s “Play Smart from the Start” campaign, focusing on three principles: playing with the right mindset, understanding the game, and acting intentionally.
Features include a pre-play checklist, guides to odds and house advantage, a Responsible Gaming IQ quiz, and quick links to support services like the National Problem Gambling Helpline. The platform also offers an Industry Toolkit, featuring messaging guides and creative assets, to help operators integrate responsible gaming across all customer interactions.
AGA President Bill Miller said the hub aims to make responsible gaming an easy, consistent part of the player experience. The launch follows broader industry efforts, such as the formation of the Responsible Online Gaming Association, aimed at addressing problem gambling as the US market expands. The hub is live at www.playsmartfromthestart.org.