Street Calls of the Week
Investing.com -- DraftKings (NASDAQ:DKNG) stock fell 0.75% and Flutter (NYSE:FLUT) dropped 3% on Friday after the New York Times reported that prediction market platform Kalshi raised over $300 million at a $5 billion valuation.
The funding round for Kalshi comes as the prediction market platform expands its reach to more than 140 countries and continues to disrupt the traditional sports betting industry. According to the report, Kalshi is now on track for $50 billion in trading volume on an annualized basis, a dramatic increase from approximately $300 million last year.
Kalshi has recently overtaken rival Polymarket to become the largest player in the prediction market industry, capturing more than 60% of global market share, according to data provider Dune. The company’s growth has been particularly strong in sports betting, especially after introducing complex wagers known as parlays.
The new funding round was led by previous investor Sequoia Capital and new investor Andreessen Horowitz, more than doubling Kalshi’s valuation. Other participants included Paradigm, CapitalG, and Coinbase Ventures.
Kalshi’s expansion into sports betting has created significant pressure on established sportsbooks, with shares of both DraftKings and Flutter’s FanDuel experiencing double-digit percentage declines over the past month.