Prediction platform Kalshi is creating some major waves in the sports betting sector. The company set a new trading record on Saturday of over $260 million before topping that on Sunday with a tally of over $275 million. The prior Kalski trading platform record was $245 million on Election Day 2024.
There was no question that Kalshi is a football platform this time of year, as 98% of its trading volume was on college and pro football games, despite the Ryder Cup taking place, MLB baseball games, and plenty of political drama.
Notably, the Sunday Night NFL football overtime game between the Green Bay Packers and Dallas Cowboys became the top-traded game of all time on Kalshi, with $57.2 million in trading volume.
A rough estimate is that Kalshi is pulling away between 5% and 10% from the sports betting sector. Of course, the platform has a big advantage in that it is legal in states like California and Texas, where sports betting has not been approved.
Investors are on top of the development. DraftKings (NASDAQ:DKNG) slumped 8.4% in morning trading, and FanDuel owner Flutter Entertainment (NYSE:FLUT) is down 6.5%.
Kalshi’s major investors include leading venture capital firms and high-profile individuals from both the fintech and finance sectors, such as Paradigm, Sequoia Capital, Multicoin Capital, Neo, Bond Capital, Peng Zhao, Charles Schwab (SCHW), Henry Kravis, Y Combinator, and Mantis VC.