Tuesday Morning Quarterback | Prediction Market Industry Update

Research evidence excerpt

Tuesday Morning Quarterback | Prediction Market Industry Update

is in talks to raise funds at a valuation of

Uncertainty surrounding market volatility and approximately $40 billion. The company could close the round as soon as Q3, and trading volumes, as well as intense competition

the discussions come just weeks after Kalshi raised $1 billion at a $22 billion valuation for market share resulting in pricing pressure,

in May, up from $11 billion in December and $5 billion in October 2025. and regulatory pressure are all risks to

participants within the industry.

• (6/26) Media reports indicate the CFTC has launched an investigation into

Polymarket. The probe follows a recent Wall Street Journal report alleging that

Polymarket utilized a misleading marketing campaign.

• (6/26) Kalshi announced a strategic branding and product partnership with ADI

Predictstreet, the Official Prediction Market Partner of the FIFA World Cup.

Heading into the knockout stage, Kalshi will be co-branded alongside ADI Predictstreet

in stadium, TV, and online placements, with both companies developing a co-branded

World Cup hub.

• (6/26) DraftKings (DKNG - not covered) launched DKeX, its proprietary prediction

markets exchange, integrated into the unified DraftKings: Sports & Casino app.

Built on the technology and CFTC license acquired through its purchase of Railbird

Technologies, DKeX gives DraftKings full ownership over content, operating economics,

and the end-to-end customer experience.

• (6/29) A Michigan judge issued a temporary restraining order blocking Kalshi from

offering sports event contracts to residents of the state. Kalshi has stated it plans

to appeal, maintaining that the CFTC holds exclusive jurisdiction over its products.