The prediction market sector got off to a hot start in May.
Each Friday at SBC Americas, we highlight some of the biggest headlines and stories you may have missed involving prediction markets.
This week in the prediction market news cycle, Kalshi was granted a preliminary injunction in Arizona after a federal judge initially denied the prediction market’s request last month.
Meanwhile, Senators in Minnesota advanced a measure to ban prediction markets from operating in the state. The bill was sent to the state’s House for further consideration.
Here’s more prediction market news that shaped this week’s U.S. gaming industry.
Kalshi reaches $22bn valuation with new funding
Kalshi’s valuation continued to soar on Thursday after the prediction market announced the closing of a $1bn funding round. The funding round values Kalshi at approximately $22bn and was led by tech-focused investment management firm Coatue Management.
The fresh injection of capital comes after Kalshi closed a previous funding round in December 2025 that included venture capital firms Sequoia Capital, ARK Invest and Andreessen Horowitz. Last December’s funding round valued Kalshi at around $11bn.
The company’s latest closing round signals investor belief in prediction markets, with Kalshi’s valuation doubling since the closing of its funding round late last year.
At one point in 2025, Kalshi was valued at $5bn after the company raised roughly $300m.
Flutter plans to continue investment in FanDuel Predicts
During Flutter’s Q1 earnings call on Wednesday, the European gaming giant announced plans to continue bolstering its prediction market offerings by creating and delivering trading markets outside its partnership with CME Group. Flutter’s FanDuel brand is currently working with third-party exchanges to develop new trading markets.
FanDuel is working with third-party exchanges as it undergoes its own approval process as a futures commission merchant by the National Futures Association (NFA). The brand’s approval as an FCM would allow it to work with other exchanges to offer event contracts.
FanDuel is applying as an FCM despite its prediction market partner, CME Group, being registered as an FCM with the NFA. FanDuel is taking steps to build and offer event contracts on its own, as CME Group currently owns more than 50% of FanDuel Predicts.
Campaign staffers reportedly pocket ‘thousands’ using prediction markets
An anonymous campaign staffer in the U.S. revealed to NPR this week that campaign staffers have won “thousands” trading on prediction markets involving the candidates they work for. The staff member’s trading was confirmed by NPR, with the staffer disclosing that trading political and culture event contracts is “commonplace” for the campaign.
The alleged trading by campaign staffers comes after the U.S. Senate unanimously voted last week to ban members and staff from using prediction markets. The ban was implemented over insider trading concerns tied to political event contracts.
Kalshi also addressed insider trading concerns by banning three political candidates from using its platform after a probe found they traded event contracts involving themselves.
The three candidates were levied fines ranging between $539 and $6,229. The House is also considering a ban after Rep. Ashley Hinson introduced a resolution on Thursday that aims to amend the chamber’s rules by blocking staff from accessing prediction markets.
JPMorgan Chase addresses prediction market craze
JPMorgan Chase provided new internal guidelines to its workforce that ask the company’s roughly 320,000 employees to be “cautious” when trading on prediction market platforms.
“Think carefully before participating in markets related to the financial sector,” says JPMorgan Chase’s guidance.
The New York-based banking giant also voiced its opposition to insider trading and wants its employees to limit their activity “in prediction markets involving JPMorgan Chase.”
The company has no plans to prevent its employees from accessing prediction market platforms and trading the polarizing sports event contracts that are stirring debate.
