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Kalshi Overview
Kalshi is the first federally regulated prediction market in the United States. Founded in 2018 by Tarek Mansour and Luana Lopes Lara, the platform obtained a CFTC Designated Contract Market (DCM) license in November 2020 and publicly launched in July 2021.
Unlike traditional sportsbooks that operate under state gambling licenses, Kalshi's event contracts are classified as financial derivatives under federal law via the Commodity Exchange Act (CEA). This means Kalshi can legally operate in states where sports betting remains banned — including California and Texas.
As of May 2026, Kalshi is valued at approximately $22 billion and processes over $2.7 billion in weekly trading volume. The platform offers over 350,000 active markets spanning sports, politics, economics, climate, and crypto.
Pros & Cons
✓ Pros
- CFTC-regulated since 2020 — federally licensed
- No crypto wallet required — US bank transfers accepted
- Available in 42+ US states including CA and TX
- 350,000+ active markets across all categories
- $1 minimum deposit — very low barrier to entry
- Fast debit card withdrawals (within 30 minutes)
✗ Cons
- Sports markets blocked in MA, OH, NV (ongoing litigation)
- Fees of 0-7% per trade can add up for active traders
- Less global market variety than Polymarket
- Winnings taxed as capital gains — requires tax reporting
How Kalshi Works
Kalshi operates as an order-book exchange. Users buy and sell Yes/No contracts on the outcome of real-world events. Each contract is priced between $0.01 and $0.99, and pays out $1.00 if the outcome occurs, $0.00 if it does not.
The price of a contract reflects the market's collective probability estimate. A contract trading at $0.65 implies the market believes there is a 65% chance of that outcome. You can take either side of any trade — buying Yes contracts if you think something will happen, or buying No contracts if you think it won't.
Kalshi uses a centralized order book, meaning all trades are matched between users — you are always trading against another person, not against Kalshi itself. The platform earns revenue by charging a small fee on each trade.
Markets Available on Kalshi
Kalshi currently offers over 350,000 active markets across multiple categories. As of 2026, sports accounts for approximately 90% of trading volume.
- Sports: NFL, NBA, NHL, MLB, Golf, Soccer, Esports (CS2, Valorant, Dota 2)
- Politics: Elections, congressional outcomes, 2026 Primaries, downballot races
- Economics: Fed interest rate decisions, CPI, GDP, unemployment
- Crypto: Bitcoin and Ethereum price levels
- Climate: Temperature records, hurricane activity
- Pop Culture: Oscars, Emmys, viral events
Kalshi also offers spread contracts, totals, and player props on major sports, plus a parlay-equivalent feature called Build Your Combo for combining multiple event contracts.
Kalshi Fees Breakdown
Kalshi charges a trading fee on each transaction. The fee structure is tiered based on the contract price and market type:
- Trading fee: 0% to 7% of contract value per trade
- No deposit fees for ACH bank transfers
- No deposit fees for debit card (standard processing applies)
- No withdrawal fees for ACH (2-4 business days)
- Debit card withdrawals typically within 30 minutes
Compared to traditional sportsbooks which take 4-8% vig on every bet, Kalshi's fees are generally lower for liquid markets. However, on thinly traded markets the spread between bid and ask can be wide, effectively increasing your cost.
How to Sign Up on Kalshi
Visit kalshi.com and click Sign Up
Download the iOS or Android app, or sign up via the web. Enter your email address and create a password.
Complete KYC verification
Upload a government-issued ID (passport or driver's license) and a selfie. Verification usually completes within a few minutes.
Sign up via our referral link
Click our referral link before signing up — the bonus is tracked automatically. No code entry required.
Make your first deposit
Deposit at least $100 via ACH bank transfer, debit card, Venmo, PayPal, or Cash App to activate your bonus.
Complete your first trade
Place at least one trade within 30 days of signing up. Your $10 bonus will be credited to your account after the trade.
Kalshi vs Polymarket
The bottom line: Kalshi wins on accessibility and regulatory clarity for US users. Polymarket wins on fees and global market depth. For most Americans starting with prediction markets today, Kalshi is the right first choice.
Expert Verdict
Kalshi is the most accessible and legally robust prediction market available to US residents in 2026. Its CFTC regulation since 2020 provides a level of institutional credibility unmatched by competitors, and the platform's acceptance of regular bank transfers removes the crypto barrier that limits Polymarket's US reach.
The platform's weakness is fees — at up to 7% per trade, active traders will find costs add up. But for the casual trader who wants to take positions on sports outcomes, elections, or Fed decisions without needing a crypto wallet, Kalshi is the clear winner.
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