Kalshi Inc. has raised more than $1 billion in new funding,valuing the prediction market platform at $22 billion, according to peoplefamiliar with the matter. The funding round comes amid a fresh setback in Nevada, where a state court imposed a 14‑day restraining order forcing the prediction market to stop offering sports, entertainment and election contracts while regulators press their case that it is operating as an unlicensed gambling operator.Kalshi was temporarily barred by a judge from offering its prediction market contracts in Nevada, after state regulators said the company didn’t have a gaming license. https://t.co/in8URVlJWj— Bloomberg (@business) March 20, 2026The order, issued by Nevada’s First Judicial District Court after a federal appeals panel cleared the way for state enforcement to proceed, bars Kalshi from taking bets in the state at least until an April 3 hearing on the longer‑term status of prediction markets there.Funding Led by CoatueThe Wall Street Journal reported that Coatue led the latestinvestment, which follows a previous $1 billion round backed by Paradigm,Sequoia Capital, Andreessen Horowitz, ARK Invest, and CapitalG. The round, led by Coatue Management, doubles thecompany’s valuation from December, when it was worth about $11 billion.Kalshi’s annualized revenue has reached about $1.5 billion,with trading volume in February topping $10 billion—twelve times higher thansix months ago. The funding highlights continued investor interest inprediction markets, despite political and regulatory challenges surrounding thesector’s legality and oversight.Keep reading: Polymarket Grabs Nearly 55% of Prediction Markets as Iran Bets Test CFTC CrackdownA recent setback in Nevada underscores how exposed Kalshistill is to state-level enforcement, even as investors mark it up to $22billion. In February, a panel of judges on the U.S. Court of Appealsfor the Ninth Circuit refused Kalshi’s emergency bid to pause civil action byNevada regulators, effectively clearing the way for the state to move aheadwith allegations that the CFTC-regulated platform is running unlicensed sportsbetting under the guise of prediction markets.Join the inaugural Finance Magnates Singapore Summit 2026, which will bring together brokers, fintechs, banks, EMIs, wealth managers, and hedge funds across APAC.Legal experts say the ruling strengthens the hand of stategaming boards in their clashes with federally supervised event-contract venues,and it adds to a growing list of forums where Kalshi has struggled to convincecourts that commodity-derivatives rules preempt traditional gambling law.Legal Scrutiny MountsArizona’s attorney general this week filed criminal chargesaccusing Kalshi of operating an illegal gambling business. The company deniedthe claims, saying it remains compliant under federal rules. Kalshi operates asa federally regulated exchange under the Commodity Futures Trading Commission, which allows it to offer event-based contracts nationwide.An Ohio federal judge recently refused Kalshi’s request toblock state enforcement, saying Ohio’s power to regulate gambling outweighs thecompany’s arguments about how its platform operates. The Arizona case is the first time a state has broughtcriminal charges against Kalshi. The move also pushes back against a growingeffort in Washington to put prediction markets under federal control alone,widening the rift between U.S. regulators and state authorities. CFTC Chair Michael Selig has taken a more aggressive stance,ordering the agency to step into court fights and arguing that federalderivatives law, not state gambling rules, should govern event contracts. Heportrays the string of state actions against Kalshi, Coinbase, Crypto.com andPolymarket as part of a coordinated state-level campaign.This article was written by Jared Kirui at www.financemagnates.com.