Prediction markets platforms Kalshi and Polymarket are seeking valuations of $20bn (£15bn) as they pursue new sources of investment.
As reported by the Wall Street Journal, both companies are in talks with potential investors with a view to landing a 10-figure valuation.
The report stressed that fundraising rounds could value both privately owned entities at close to the $20bn, but with talks in early stages there is no guarantee of the touted valuations being hit.
Both companies received significant financial investment towards the end of 2025.
Kalshi closed a Series E funding round in December which raised $1bn, leaving the company with an $11bn valuation.
The round was led by Paradigm and featured contributions from Sequoia Capital, Andreessen Horowitz, Meritech Capital and IVP.
This came less than two months after Kalshi’s previous funding round which generated $300m and allowed the company to expand into more than 140 countries.
Meanwhile, Polymarket secured a $2bn investment around the same time from Intercontinental Exchange (ICE), which valued the platform at more than $8bn.
The valuations of the prediction markets platform has come in tandem with sports betting operators’ valuations sliding.
Listed giants such as Flutter and DraftKings have seen their market caps slashed in recent months amid pressure from prediction markets.
Flutter’s stock is down more than 60% over the past six months, with its market cap sitting at $19.7bn. DraftKings is down 45.2% across the same period, with a market cap of $12.4bn.
Polymarket has been unavailable in the US since 2022, and has since acquired Commodity Futures Trading Commission (CFTC)-licensed QCEX to expedite its return.
Both companies came under scrutiny earlier this month over the handling of markets pertaining to the US and Israeli strikes on Iran.
Polymarket sparked fears of insider trading after six users made a combined $1.2m on its “US strikes Iran by…?” market, first created in December 2025.
Kalshi was involved in controversy after it declined to payout on any trades relating to the former Ayatollah, Ali Khamenei, being ousted from office by a certain date.
CEO Tarek Mansour took to X to confirm the platform would not be paying out on death markets, and instead refunded any trades made on the market.
State gaming regulators across the US have also been vociferous in their opposition of the ever-growing prediction markets vertical.
In January, a Massachusetts judge granted a temporary injunction against Kalshi that ruled the company couldn’t offer sports-related event contracts in the state without a gaming licence.
In November, a Nevada judge reversed a previous injunction which allowed Kalshi to remain online in the state after a lengthy dispute between the firm and the state regulator.
Regulators in Tennessee and Connecticut have also sent cease-and-desist orders to prediction market platforms, including both Kalshi and Polymarket, in recent months.
Polymarket was also issued a cease-and-desist order in the Netherlands by the Netherlands Gambling Authority last month.
The post Report: Kalshi and Polymarket eyeing $20bn valuations while pursuing new funding first appeared on EGR Intel.
Both prediction markets platforms are in talks with investors to double their valuations after securing major capital injections at the tail end of 2025
The post Report: Kalshi and Polymarket eyeing $20bn valuations while pursuing new funding first appeared on EGR Intel.