Kalshi is a prediction market: a CFTC-regulated exchange, founded in 2018, where people trade yes-or-no contracts on events such as elections, economic data, weather and sports.

How does Kalshi work?

Kalshi is a federally regulated exchange where users buy and sell yes-or-no contracts on events. Each contract pays $1 if the event happens and nothing if it does not, and users trade with each other rather than against Kalshi.

How does Kalshi make money?

From fees on trades. Its standard taker fee is 0.07 × contracts × price × (1 − price), rounded up, so it peaks on contracts priced near 50 cents. Kalshi says it does not profit when customers lose, unlike a sportsbook, which keeps what bettors lose.

Can you parlay on Kalshi?

Kalshi offers combos, contracts that bundle several outcomes into one, which work like a parlay. Its fee schedule prices them separately.

How does Kalshi pay out?

When a market settles, each contract on the winning side pays $1.00 and each on the losing side pays $0.00. Kalshi charges no settlement fee and no fee for ACH withdrawals; its fees are charged when you trade.

Who is on the other side of a Kalshi trade?

Another user. Kalshi says its customers trade with each other at prices set by supply and demand, not against the house.

Is Kalshi legal in my state?

Kalshi is available in most states, but by our records it is blocked or restricted in Michigan, Nevada and Washington. Courts are still deciding whether states can bar its sports contracts.

How old do you have to be to use Kalshi?

18. Kalshi requires individual account holders to be 18 or older and may require ID documents to open an account.

Guide

What is Kalshi and how does it work?

An exchange for yes-or-no contracts on events, regulated like a futures market. Here is what you are buying, who is on the other side, and the rules around it.

Reviewed Nov. 5, 2026 · Live figures update with our records · Sources are footnoted

The short answer

Kalshi is a prediction market: a CFTC-regulated exchange where people trade yes-or-no contracts on events. A contract pays $1 if the event happens and $0 if it doesn’t, and you trade with other users, not against Kalshi.¹ It was founded in 2018 and makes its money from trading fees.^2,3

What you buy

An event contract is a derivative whose payoff depends on whether a specified event happens.⁴ On Kalshi each contract settles at $1.00 if the answer is yes and $0.00 if it is no, so a price in cents can be read as the market’s implied probability.¹

Who you trade against

Kalshi says its customers trade peer-to-peer, at prices set by supply and demand, not against the house.¹ Exchanges like Kalshi earn fees on trades; a sportsbook instead takes the other side of each bet and keeps what bettors lose.⁵ Kalshi says it does not profit when customers lose and does not limit winning customers.¹ That difference is central to the legal fight over whether its sports contracts are gambling: see is Kalshi gambling?

Who regulates it

The CFTC designated KalshiEX LLC as a contract market in November 2020.⁶ Designated contract markets are the federal exchanges the CFTC says may admit retail customers, and they must meet 23 core principles on an ongoing basis.⁷ Since a January 2025 change to Kalshi’s order, brokers can route their customers’ trades to it.⁸ Apps that offer Kalshi contracts this way include Robinhood, Coinbase, Webull, Underdog and PrizePicks.

How a market gets listed

Kalshi does not need the CFTC’s approval for each new market. Under federal law an exchange can list a contract by certifying to the CFTC that it complies with the rules.⁹ The CFTC can bar contracts it finds contrary to the public interest in categories that include gaming, and its rules bar listing contracts that involve gaming.^9,10 What counts as gaming is part of the dispute; see how is Kalshi legal?

What it costs

Kalshi makes its money from trading fees. The standard taker fee, charged when your order matches one already waiting, is 0.07 × contracts × price × (1 − price), rounded up, so 100 contracts at 50 cents cost about $1.75 in fees and 100 at 90 cents about $0.63.³ Makers pay a smaller fee only in markets the schedule lists, and there is no settlement fee or ACH charge.³ Kalshi also lists combos, which bundle several outcomes into one contract the way a parlay does.³ Who owns the company and what it is worth: Kalshi stock and valuation.

Opening an account

Kalshi requires individual account holders to be 18 or older and may ask for identity documents.¹¹ Most states set the gambling age at 20 or 21, one reason the age limit is contested:¹² see how old you have to be.

Where it’s available

Kalshi launched sports contracts on Jan. 23, 2025 and by that year’s Super Bowl offered them in all 50 states, including states that don’t allow sports betting.^13,14 Since then courts and regulators have restricted it in some states; by our records it is now blocked or restricted in Michigan, Nevada and Washington. We track 74 lawsuits naming Kalshi. Check any state on Kalshi’s page or follow Kalshi news.

Taxes and limits

Kalshi’s help center lists the tax forms it may send, including 1099-INT, 1099-MISC, 1099-B and 1099-DA.¹⁵ The IRS has issued no formal guidance on how event contracts are treated;¹⁶ see prediction market taxes. Kalshi also offers deposit caps, trading breaks and voluntary self-exclusion.^17,18 If gambling is causing you harm, call or text 1-800-GAMBLER.

Questions

What is Kalshi?: Kalshi is a prediction market: a CFTC-regulated exchange, founded in 2018, where people trade yes-or-no contracts on events such as elections, economic data, weather and sports.
How does Kalshi work?: Kalshi is a federally regulated exchange where users buy and sell yes-or-no contracts on events. Each contract pays $1 if the event happens and nothing if it does not, and users trade with each other rather than against Kalshi.
How does Kalshi make money?: From fees on trades. Its standard taker fee is 0.07 × contracts × price × (1 − price), rounded up, so it peaks on contracts priced near 50 cents. Kalshi says it does not profit when customers lose, unlike a sportsbook, which keeps what bettors lose.
Can you parlay on Kalshi?: Kalshi offers combos, contracts that bundle several outcomes into one, which work like a parlay. Its fee schedule prices them separately.
How does Kalshi pay out?: When a market settles, each contract on the winning side pays $1.00 and each on the losing side pays $0.00. Kalshi charges no settlement fee and no fee for ACH withdrawals; its fees are charged when you trade.
Who is on the other side of a Kalshi trade?: Another user. Kalshi says its customers trade with each other at prices set by supply and demand, not against the house.
Is Kalshi legal in my state?: Kalshi is available in most states, but by our records it is blocked or restricted in Michigan, Nevada and Washington. Courts are still deciding whether states can bar its sports contracts.
How old do you have to be to use Kalshi?: 18. Kalshi requires individual account holders to be 18 or older and may require ID documents to open an account.