What Is Kalshi?
Kalshi is a US-based prediction market exchange, founded in 2018 by Tarek Mansour and Luana Lopes Lara while studying at MIT. Unlike offshore or crypto-native platforms, Kalshi operates as a federally regulated Designated Contract Market (DCM) under the Commodity Futures Trading Commission (CFTC), the same regulatory tier as major derivatives exchanges like the CME Group, a status it secured in November 2020.
Trading on Kalshi means buying binary event contracts, each tied to a specific yes/no question, priced between $0.01 and $0.99, and settling at $1.00 if the outcome occurs or $0.00 if it doesn’t. Any US resident aged 18 or older with a valid Social Security Number can open an account and trade.
How Trading on Kalshi Actually Works
Kalshi functions as a genuine exchange rather than a bookmaker: you’re not betting against the house, you’re trading contracts against other users, with Kalshi earning a small, probability-weighted trading fee rather than profiting from your losses directly. That fee structure means the fee is highest on contracts trading close to 50 cents, where outcomes are most uncertain, and lowest on contracts priced near certainty.
As of early 2026, Kalshi lists over 500 active markets, spanning economics (roughly 35% of listings), politics (25%), climate (15%), technology (15%), and culture (10%). That’s fewer markets than crypto-native competitors like Polymarket, largely because Kalshi must secure individual CFTC approval for each new contract type before listing it, a structural trade-off for its regulated status.
Regulation & the State-vs-Federal Legal Battle
Kalshi’s core value proposition is regulatory legitimacy: because it’s licensed federally as a CFTC-regulated exchange, Kalshi has argued that federal law preempts conflicting state gambling regulations, particularly around sports-related contracts, an argument that has produced real legal wins. In April 2026, the US Court of Appeals for the Third Circuit sided largely with Kalshi, affirming an injunction that blocked New Jersey from enforcing state gambling law against the platform’s contracts.
Not every state dispute has resolved the same way, and the picture is still actively evolving. Arizona filed 20 separate charges against Kalshi in March 2026, alleging unlicensed gambling operations, though the CFTC secured a temporary restraining order halting that state-level trial. Election-related contracts have been permitted federally since 2024 court rulings from the DC Circuit, but sports contracts specifically remain contested in multiple states, worth checking your own state’s current status on before trading sports-related markets specifically.
Kalshi vs Polymarket: The Short Version
The core distinction comes down to regulation versus reach. Kalshi is federally regulated and unambiguously legal for verified US residents, trading in US dollars with no crypto wallet required, but offers a smaller catalog of roughly 500 markets, each requiring individual CFTC approval before listing. Polymarket trades in USDC on the Polygon blockchain, offers over 1,000 markets with far less listing friction, and only recently re-opened to US traders in December 2025 after acquiring a CFTC-licensed exchange of its own.
For a full side-by-side comparison covering both platforms across more categories, see our main prediction markets page.
FAQ – Kalshi
Yes. Kalshi is a CFTC-regulated Designated Contract Market, making it legal for US residents at the federal level. Election and political contracts have been permitted since 2024 court rulings, though sports contracts remain contested in some states.
Any US resident aged 18 or older with a valid Social Security Number can open an account and trade on Kalshi.
No. Kalshi trades in US dollars and does not require a crypto wallet, a key difference from crypto-native platforms like Polymarket.
Kalshi uses a probability-weighted trading fee, highest on contracts near 50 cents and lowest near certainty, with no fees charged on winning trades under its current model.
As of early 2026, Kalshi lists over 500 active markets, spanning economics, politics, climate, technology, and culture, fewer than crypto-native competitors since each new contract type requires individual CFTC approval.
As a CFTC-regulated exchange, Kalshi is subject to federal oversight and the Commodity Exchange Act’s core regulatory principles, a materially different risk profile than an unregulated offshore platform.
Max Ledger
Casino and gaming expert
Max Ledger is a crypto and online casino specialist who has personally reviewed 20+ crypto casinos on this site, covering blockchain gambling platforms, bonus structures, and provably fair gaming.