Kalshi Prediction Markets Are Pulling In $1 Billion Monthly as State Regulators Loom

Core Insights - Kalshi has surpassed $1 billion in monthly trading volume, dominating the global prediction market despite being limited to American customers [1] - The company accounts for approximately 62% of global prediction market volume, with significant growth coinciding with the NFL season [2] - Regulatory challenges are intensifying, with multiple states issuing cease-and-desist orders and lawsuits alleging that Kalshi's contracts constitute unlicensed sports betting [3][4] Group 1 - Kalshi's trading volume has significantly increased, particularly in August, aligning with the start of the NFL season [2] - The prediction market is now the leading platform in its industry, surpassing competitors like Polymarket, which holds 37% of the market [2] - The Massachusetts lawsuit seeks to prevent Kalshi from operating in the state, claiming its contracts are akin to illegal sports wagering [3] Group 2 - Regulators in Maryland, Nevada, and New Jersey have also raised concerns, leading to federal court cases regarding Kalshi's operations [3] - The Massachusetts Attorney General argues that Kalshi's platform is similar to licensed sportsbooks, which are subject to state regulations and taxes [4] - Kalshi allows users aged 18 and older to trade, while the legal age for online sports betting in Massachusetts is 21 [4]