Kalshi and Polymarket combined 2025 trading volume exceeds $44 billion.

Odaily Planet Daily reports that Kalshi and Polymarket processed a combined trading volume of over $44 billion in 2025. As of April 2026, the monthly trading volume of both platforms reached $24 billion, surpassing the average monthly wagering volume of legal U.S. sports betting platforms; Kalshi generated $263.5 million in fee revenue last year, with annualized revenue now exceeding $1.5 billion. Prediction markets operate on a binary contract exchange model, where platforms match buyers and sellers without placing bets themselves, holding positions, or assuming risk for event outcomes. Primary revenue comes from transaction fees, with additional income derived from data licensing, institutional trader API access, and market creation fees on certain platforms. In the U.S. market, Kalshi is a designated contract market (DCM) registered with the U.S. Commodity Futures Trading Commission (CFTC). Polymarket re-entered the U.S. market at the end of 2025 by acquiring QCEX, a CFTC-regulated entity, for $1.12 billion; some states still classify prediction market contracts as gambling, and related federal and state litigation remains ongoing. The EU’s Markets in Crypto-Assets Regulation (MiCA) does not directly define the legal status of prediction market contracts, leading to varying classifications among member states. If a platform uses crypto settlement and provides custody or transfer services to EU users, it must obtain a Crypto-Asset Service Provider (CASP) license.