Kalshi Could Leverage Soaring Valuation as Acquisition Currency

• Rumors suggest Kalshi is pursuing a $5 billion valuation
• Company could use equity as currency for sports betting-related acquisitions
• Kalshi is believed to have approached a sports-centric rival in recent weeks

Last month, reports surfaced that prediction markets Goliath Kalshi is considering a financing round that would value the company at around $5 billion, or more than double the $2 billion it was valued at following a $185 million Series C funding round in June. Some experts believe the derivatives exchange operator could use its surging multiple to become acquisitive in the sports betting realm.

In a new report, Eilers & Krejcik Gaming (EKG) said it expects Kalshi will pursue acquisitions to shore up its sports-wagering capabilities. The research firm lays out a case for the event contract purveyor to pursue back-end, technology-focused deals, perhaps more so than client-facing purchases.

Top priority would be pricing/market-making firms that can deliver prop and same-game parlay (SGP) liquidity, alongside sports betting expertise—an area where Kalshi remains thin, in our view,” observes the research firm.

To this point in the 2025 NFL season, reviews are mixed as to whether Kalshi is offering better pricing on moneyline bets and totals than DraftKings (NASDAQ: DKNG) and FanDuel parent Flutter Entertainment (NYSE: FLUT). The consensus in the analyst community appears to be that are select NFL games on which pricing is superior, but broadly speaking, traditional gaming companies are offering better odds.

Parlays Could Portend Need for Kalshi Acquisition

Kalshi recently rolled out football SGPs, but volume on those bets has been low, prompting industry observers to note the prediction market still has a long way to go to catch up to the likes of DraftKings and FanDuel on the parlay front.

“If we’re Kalshi, we’d leverage the low cost of capital and use stock as currency to move aggressively on pricing expertise,” said the research firm.

EKG didn’t mention specific companies that would make for credible Kalshi targets, but it opines that prospective targets may be leery of accepting Kalshi equity at what are “elevated multiples.”

Kalshi Mentioned in One Takeover Rumor

Kalshi recently appeared at the epicenter of some mergers and acquisitions speculation. Last month, reports surfaced that both that company and rival Polymarket poked around about possibly acquiring competitor Novig.

Privately held Novig runs a peer-to-peer prediction market focusing exclusively on sports, so it would check the box of bolstering Kalshi’s sports footprint while potentially being additive on the technology.

Rumors indicate multiple suitors beyond Kalshi and Polymarket may be interested in Novig, suggesting there could be ample competition for the firm. It’s not clear if Novig is actively shopping itself or that it would be a willing seller.