On September 30, prediction market operator Kalshi is negotiating a $1 billion funding round with a target valuation of $40 billion. Existing investors Sequoia Capital and Wellington Management are discussing leading the round, with Tiger Global and Dragoneer Investment Group also involved in the discussions. This funding round has not yet been completed, and the final list of investors and closing date have not been disclosed. Kalshi raised $300 million at a $5 billion valuation in October 2025 and completed a $1 billion funding round at a $22 billion valuation in May 2026. On September 25, the U.S. Sixth Circuit Court of Appeals issued an unfavorable ruling for Kalshi in a lawsuit involving Ohio and Tennessee, allowing the two states to regulate its sports contracts under gambling laws. Kalshi asserts that its products are regulated by the U.S. Commodity Futures Trading Commission.