Kalshi

What Is Kalshi?

Who Operates Kalshi

Kalshi runs its business through two companies. KalshiEX LLC lists the contracts that traders can buy and sell, while Kalshi Klear LLC handles clearing once an event is settled. Both companies are owned by Kalshi Inc., which is privately held. Kalshi is one of the few places that both lists and clears its own contracts.

An Exchange, Neither a Casino Nor a Sportsbook

Is Kalshi a casino? No, it is not. Kalshi is a federally regulated exchange where people trade contracts based on real-world events. It does not offer slots, table games, or its own sports betting. 

When you trade, you buy a Yes or No position, and the price shows what the market thinks the chances are.

Is Kalshi Legit and Legal?

Kalshi's CFTC Designation

KalshiEX LLC has operated as a CFTC-designated contract market since November 2020, under an Order of Designation issued under Section 5 of the Commodity Exchange Act and CFTC Regulation 38.3(a). 

Kalshi Klear LLC, the affiliated clearing house, received DCO registration in August 2024, the 18th derivatives clearing organization registered with the Commission. 

Is Kalshi legal? On 29 May 2026, the CFTC approved Kalshi’s BTCPERP perpetual bitcoin contract under CEA Section 5c(c)(4)  and Regulation 40.3. Both registrations are verifiable through the CFTC’s own register.

Where Kalshi Is Available in the US

Kalshi is federally regulated across the US, but not every state allows every contract. To answer the question: Is Kalshi safe from a legal perspective? Its federal designation is real and can be checked, but state rules are different. 

Nevada blocks Kalshi completely, as a court ruled in August 2026 that federal law does not override Nevada’s gaming license rules. Michigan and Washington only restrict sports contracts and allow other types.

The Michigan and Washington Restrictions

In Michigan, a restraining order in June 2026 led to a court order in September that blocks Michigan residents from trading sports contracts, with fines up to $500,000 per day. Washington did something similar. 

In August 2026, a court order blocked sports, election, and some other contracts for Washington residents, with fines up to $120,000 per day. However, contracts for commodities, climate, economics, and finance are still available there.

The State Cease-and-Desist Actions

There are also cease-and-desist orders in Arizona, Maryland, Montana, New Jersey, and Ohio. Courts have made different decisions: in April 2026, the Third Circuit said New Jersey cannot regulate Kalshi because of federal law, but in August, the Ninth Circuit said Nevada can. 

This could lead to a Supreme Court case. You can find the latest state-by-state updates on our prediction market regulatory tracker.

What You Can Trade on Kalshi

The Market Categories

Kalshi markets span eight categories: 

• elections and politics
• sports
• economics
• weather 
• Crypto
• culture and entertainment

Plus financial indices and science and technology. This is the broadest lineup of any US-regulated designated contract market.

How a Binary Contract Works

How does Kalshi work? Each contract trades between 1 cent and 99 cents and settles at either $1 or nothing. The price shows the market’s view of the chance that the event will happen. 

All positions are fully backed, with no margin or leverage, and you can sell before the event is decided. Kalshi also offers a CFTC-approved perpetual futures contract linked to bitcoin’s spot price, which works differently from regular event contracts.

Liquidity and Volume

Kalshi leads US-regulated exchanges in trading volume, with $5.14 billion traded in the 30 days leading up to December 2025, according to DefiLlama. In June 2026, Kalshi, Polymarket, and Polymarket US together cleared $44.8 billion, which was a 75% increase from May.

Kalshi Fees and How Markets Settle

Trading Fees

Kalshi’s taker fee is calculated as 0.07 times the number of contracts, times the price, times one minus the price. The fee is highest at 1.75% for a contract priced at 50 cents and drops close to zero at the lowest and highest prices. Most trading costs on Kalshi are well below 0.5%.

Maker and Taker

Maker fees are 0% for most markets, but they go up to a flat 0.25% per contract during big events like the NFL and NBA finals or presidential elections. There are no fees to deposit money.

How a Market Settles

Each contract lists its settlement source in the market rulebook before it is offered. For example, economic contracts settle based on official government releases from the BLS, BEA, or Federal Reserve. Sports contracts settle on official league results, and weather contracts use NOAA data. 

Contracts are self-certified under CFTC Regulation 40.2, and there is a one-business-day window for the Commission to object before they go live.

Position Limits

Position limits are set for each contract in the market’s rulebook. There is no overall retail cap for the whole exchange, which is different from PredictIt’s flat $3,500 limit.

Funding a Kalshi Account

You can fund your Kalshi account with:

• debit card 
• ACH bank transfer
• wire transfer
• USDC and other stablecoins 

Withdrawals run through the same rails. PredictIt takes only debit and ACH, Robinhood and ForecastEx run on a brokerage balance, and Polymarket's international platform is USDC-only, making Kalshi's mix a genuine point of difference. 

Current Kalshi promotions and account credits are covered on a separate page.

The Kalshi App

iOS and Android

Kalshi has a native app for both iOS and Android, focused on its prediction markets. You can find full setup instructions and feature details on our dedicated Kalshi app page.

Trading Kalshi Through Another App

Kalshi contracts are also distributed through Robinhood Derivatives LLC and Webull. A Robinhood-routed order fills against the same KalshiEX order book at the same depth. A reader who already holds a Robinhood account doesn't need a second one.

Trading event contracts risks the full amount committed to a position. This is not financial advice. Kalshi is available to users 18 and older, subject to the state restrictions above.