Kalshi and Polymarket Intensify Rivalry in Prediction Markets

Kalshi and Polymarket are locked in a fierce battle for dominance in the prediction markets space, with both platforms reporting significant growth in activity volumes and market share. Kalshi, leveraging sports betting and Robinhood integrations, now commands over 66% of the predictions market. Polymarket remains competitive, particularly in current events, but trails in mainstream adoption.

September marked a milestone for both platforms, with Polymarket processing $1.44 billion in activity volumes and Kalshi reaching $2.74 billion. Kalshi's daily active markets surged to 79,000, dwarfing Polymarket's 33,320. The rivalry escalated after Polymarket secured a $9 billion valuation with a $2 billion raise, while Kalshi landed a $5 billion valuation with $300 million in funding.

The endgame for both firms is clear: transform prediction markets into mainstream financial products, particularly in the U.S. Both are rebranding as trading venues rather than betting platforms, aiming to shed their gambling stigma. Kalshi's integration with third-party apps over the past year has given it an edge in mainstream appeal.