Kalshi, Polymarket top $44 billion in combined 2025 trading volume

Odaily Planet Daily reports that prediction markets Kalshi and Polymarket handled more than $44 billion in combined trading volume in 2025. As of April 2026, their combined monthly volume climbed to $24 billion, exceeding the average monthly wagering volume seen on regulated U.S. sports-betting platforms. Kalshi generated $263.5 million in fee revenue last year, and its annualized revenue rate has now surpassed $1.5 billion. Prediction markets typically run a binary contract exchange model: the platform matches buyers and sellers but does not place bets itself, hold directional positions, or take event-outcome risk. Revenue is primarily driven by transaction fees, with additional contributions from data licensing, API access for institutional traders, and market-creation fees on some venues. In the U.S., Kalshi operates as a designated contract market (DCM) registered with the Commodity Futures Trading Commission (CFTC). Polymarket returned to the U.S. market at the end of 2025 after acquiring QCEX, a CFTC-regulated entity, for $1.12 billion. Some states still treat prediction-market contracts as gambling, and related federal and state litigation remains ongoing. In the EU, the Markets in Crypto-Assets Regulation (MiCA) does not explicitly define the legal status of prediction-market contracts, resulting in different classifications across member states. Platforms that use crypto settlement and offer custody or transfer services to EU users must obtain a Crypto-Asset Service Provider (CASP) license.