Published on: October 2, 2025, 01:55h.
Updated on: October 2, 2025, 01:55h.
- Speculations hint at Kalshi aiming for a $5 billion valuation
- The firm could leverage equity for acquisitions in the sports betting sector
- Kalshi is rumored to have approached a competitor focused on sports recently
Recent reports indicate that the prediction markets powerhouse, Kalshi, is contemplating a financing round that could value the company at approximately $5 billion, significantly up from the $2 billion valuation it achieved during a $185 million Series C funding in June. Industry analysts suggest that this increased valuation could enable the derivatives exchange to make acquisitions within the sports betting sector.
According to a new analysis from Eilers & Krejcik Gaming (EKG), Kalshi is expected to seek acquisitions aimed at enhancing its sports wagering capabilities. The research group suggests that Kalshi may focus more on backend, technology-driven deals rather than those aimed at customer-facing improvements.
“The primary focus would be on firms specializing in pricing and market-making that can provide liquidity for prop bets and same-game parlays (SGPs), an area where Kalshi currently lacks expertise,” the research group highlighted.
As the 2025 NFL season progresses, opinions are divided on whether Kalshi offers improved pricing on money line bets and totals compared to competitors DraftKings (NASDAQ: DKNG) and FanDuel’s parent company Flutter Entertainment (NYSE: FLUT). Analysts generally agree that while Kalshi has favorable pricing for certain NFL games, traditional gaming firms still offer superior odds overall.
Expansion in Parlays May Drive Kalshi Acquisitions
Kalshi has recently introduced same-game parlays for football, but the betting volume has been low, suggesting that the prediction market needs significant growth to compete with DraftKings and FanDuel in the parlay segment.
Multi-leg bets, especially same-game variants, remain incredibly popular among bettors and are lucrative for sportsbooks. This implies that Kalshi may look to expand in this area, which could prompt the company to seek partnerships that strengthen its market-making capabilities, according to EKG.
“If we were in Kalshi’s position, leveraging the favorable capital costs and utilizing stock as currency would be advisable to aggressively acquire pricing expertise,” suggested the research group.
While EKG did not specify potential acquisition targets for Kalshi, it indicated that companies may hesitate to accept Kalshi’s equity at current valuations that are perceived as “elevated multiples.”
Kalshi Featured in Acquisition Speculations
Kalshi has recently found itself at the center of speculation regarding mergers and acquisitions. Reports emerged last month suggesting that both Kalshi and competitor Polymarket were exploring the possibility of acquiring Novig, a competitor focused solely on sports within the peer-to-peer prediction market space.
Privately held Novig could enhance Kalshi’s sports presence while contributing valuable technology resources.
However, sources indicate that several other potential buyers, in addition to Kalshi and Polymarket, may also be interested in Novig, suggesting a competitive landscape. Additionally, it remains uncertain whether Novig is actively seeking buyers or is open to offers.