Kalshi Review 2026: Fees, Contracts & CFTC-Regulated Trading

Last Updated: March 2026

Kalshi is the only fully CFTC-regulated prediction market exchange in the United States, operating as a Designated Contract Market since 2020. With an $11 billion valuation as of November 2025, distribution through Robinhood and Webull, and contracts spanning politics to weather, Kalshi is the dominant US-facing exchange. This review covers fees, contract coverage, controversies, and what the platform gets wrong.

Quick Verdict: How Does Kalshi Score?

Our editorial team rated Kalshi across six categories. Scores reflect the platform’s standing as of March 2026, weighted against both prediction market peers and the broader derivatives exchange landscape.

The regulation and distribution scores are Kalshi’s strongest assets. The controversies documented below are factored into but do not dominate the trust score — CFTC oversight provides structural protections that unregulated platforms lack.

What Is Kalshi?

Kalshi is a CFTC-regulated derivatives exchange where users trade binary event contracts. Each contract resolves to $1.00 if the specified event occurs, or $0.00 if it does not. This is the same regulatory framework that governs CME Group, CBOE, and other US futures exchanges — segregated customer funds, audited settlement processes, and federal oversight.

The distinction matters: Kalshi is not a sportsbook and not a gambling site. It is a regulated financial exchange. Contracts are classified as event derivatives under the Commodity Exchange Act. This regulatory status determines how the platform is taxed (1099-B, not W-2G), how disputes are resolved (CFTC enforcement, not state gaming commissions), and what protections users have if the company fails (segregated accounts).

Kalshi was founded in 2018 by Tarek Mansour and Luana Lopes Lara. The CFTC granted its DCM designation in 2020. In September 2024, Kalshi won a landmark federal court ruling allowing it to list political event contracts — a category the CFTC had attempted to block. By November 2025, the platform’s valuation reached $11 billion.

For a detailed breakdown of Kalshi’s contract mechanics, see our Kalshi platform profile. Our live dashboard tracks Kalshi contract prices and volume in real time.

How Does Trading on Kalshi Work?

Kalshi operates a central limit order book (CLOB). Users place buy and sell orders at specified prices, and the matching engine executes trades when a buyer’s bid meets a seller’s ask. If you have traded stocks or futures, the mechanics are identical.

Each contract is priced between $0.01 and $0.99. The price reflects the market’s implied probability of the event occurring. A contract trading at $0.65 implies approximately a 65% probability. If the event occurs, the contract settles at $1.00. If not, it settles at $0.00.

Example trade: You believe the Federal Reserve will cut rates at its next meeting. The “Yes” contract trades at $0.42. You buy 100 contracts for $42.00 total. If the Fed cuts, you receive $100.00 — a $58.00 gross profit minus fees. If the Fed holds, you lose $42.00.

Key mechanics:

• Market orders execute immediately at the best available price
• Limit orders sit on the book until filled or cancelled
• Positions can be sold before settlement — you do not need to hold until the event resolves
• Short selling is available by selling “Yes” contracts you do not own (equivalent to buying “No”)

Settlement is handled by Kalshi’s internal resolution team using predefined criteria. Unlike blockchain-based platforms that use oracles or decentralized voting, Kalshi’s team determines outcomes. This is faster and less ambiguous but introduces single-point-of-failure risk on resolution disputes.

Where Is Kalshi Available?

Kalshi is accessible in approximately 43 US states for non-sports contracts. Sports event contracts carry additional restrictions due to state-level regulations.

Sports contracts restricted or unavailable in:

Non-sports contracts — politics, economics, weather, crypto, culture — are generally available nationwide, though Kalshi faces ongoing state-level regulatory challenges in Massachusetts and Nevada that could affect broader access.

International availability is limited. Kalshi primarily serves US residents who can complete its KYC process with a US Social Security Number and government-issued ID. For international prediction market access, Polymarket serves a global user base.

What Are Kalshi’s Fees?

Kalshi charges fees at two points: when you trade and when contracts settle. The fee structure has been adjusted multiple times since launch, so verify current rates on kalshi.com.

The per-contract fee model means costs scale linearly with position size. A 100-contract position costs 100x the per-contract fee, regardless of the contract price. This differs from Polymarket’s percentage-of-winnings model, where fee impact varies based on the contract price and outcome.

Cost comparison on a $100 position:

Kalshi’s flat per-contract fee tends to be cheaper on low-probability contracts (buying at $0.10-$0.20) where potential profit per contract is large. On high-probability contracts (buying at $0.80-$0.90), the per-contract fee represents a larger percentage of the thin profit margin. Our fee calculator models the exact cost difference across platforms for any given trade.

What Contracts Can You Trade on Kalshi?

Kalshi’s contract catalog spans six primary categories. Depth and liquidity vary significantly across them.

Economics — Federal Reserve rate decisions, CPI prints, GDP growth, unemployment claims, housing data. These are Kalshi’s deepest markets. Fed rate decision contracts routinely carry six-figure open interest and sub-2-cent spreads. Our dashboard shows economics contracts consistently rank among the highest-volume markets on the platform.

Politics — Presidential, congressional, gubernatorial, and policy-related contracts. Enabled by the September 2024 court ruling. Political contracts saw enormous volume during the 2024 election cycle and remain a major draw.

Sports — NFL, NBA, MLB, NHL, and other major league outcomes. Subject to the state restrictions listed above. Sports contracts are Kalshi’s fastest-growing category but face regulatory headwinds in 10 states.

Weather — Temperature records, hurricane activity, seasonal forecasts. A unique category that no major sportsbook covers. Attracts both retail traders and hedgers in weather-sensitive industries.

Crypto — Bitcoin and Ethereum price targets, ETF approvals, regulatory actions. Settled in USD, not cryptocurrency.

Culture — Award shows, media events, technology milestones. Generally lower liquidity than the categories above.

For real-time contract prices and volume across all categories, see our prediction market dashboard, which aggregates data from Kalshi and other exchanges.

What About Kalshi’s Controversies?

Any honest review must address three incidents that have generated public criticism. These are documented facts, not editorial judgments.

January 2026 — Payout Dispute. Multiple users reported delayed or disputed payouts on resolved contracts. Complaints appeared on social media and in user forums. The specifics involved disagreements over resolution criteria on certain contracts. Kalshi stated that resolutions followed the published rules. The dispute highlighted the risk inherent in centralized resolution — when one entity determines outcomes, disagreements are inevitable.

February 2026 — Insider Trading Suspension. Kalshi suspended internal trading activities after reports of potential insider trading involving employees or affiliates. The company acknowledged the suspension and stated it was conducting an internal review. As of March 2026, the outcome of this review has not been publicly disclosed.

November 2025 — Class-Action Lawsuit. A class-action lawsuit was filed against Kalshi. The specific claims and current status of the litigation should be verified through court records for the latest information.

Context: These incidents are part of the operational history of a novel financial exchange operating in a regulatory category that did not exist five years ago. They should be weighed alongside Kalshi’s CFTC regulation, segregated customer funds, and the structural protections that come with DCM status. No CFTC-regulated exchange has ever lost customer funds due to company failure — though past performance does not guarantee future protection.

For ongoing coverage of prediction market regulatory developments, see our predictions vertical.

How Does Kalshi’s KYC Process Work?

Kalshi requires full identity verification before users can trade. This is a regulatory requirement, not an optional step.

Required documentation:

• Social Security Number (SSN)
• Government-issued photo ID (driver’s license or passport)
• Proof of address (utility bill, bank statement, or equivalent)
• US residency confirmation

The process typically takes 1-3 business days for approval, though some users report longer waits during high-demand periods. This is significantly more friction than opening a sportsbook account, which typically requires only name, email, and date of birth.

The conversion impact is real. Industry data suggests KYC-intensive onboarding reduces signup-to-first-trade conversion rates by 30-50% compared to sportsbooks. Users who clear KYC tend to be higher-value and more active, but the funnel loss is substantial. If you are evaluating Kalshi as a publisher or partner, factor this friction into any traffic-to-conversion estimates.

Who Are Kalshi’s Distribution Partners?

Kalshi’s distribution strategy is its most underappreciated advantage. Rather than competing solely for direct signups, Kalshi routes its contracts through established brokerages.

This means users with existing Robinhood or Webull accounts can trade Kalshi contracts without a separate Kalshi signup or additional KYC process (assuming their brokerage account is already verified). The distribution reach is substantial — Robinhood alone has over 23 million funded accounts.

For Kalshi, the brokerage channel solves the KYC conversion problem. For brokerages, event contracts add a new product vertical. The arrangement mirrors how CME Group’s futures are accessible through multiple brokerages rather than only through CME’s own interface.

How Does Kalshi Compare to Polymarket and DraftKings Predicts?

A full comparison is available in our platform comparison section, but the key differences are:

Kalshi’s advantages are regulation, USD deposits, and brokerage distribution. Polymarket leads on global volume and market breadth. DraftKings Predicts benefits from the existing DK user base and 38-state availability including California and Texas. Each platform serves a different segment.

For more detail, read our Polymarket review and DraftKings Predicts review.

What About Kalshi Affiliate and Publisher Monetization?

Kalshi does not offer a formal CPA (cost-per-acquisition) affiliate program for publishers. This is a significant gap compared to sportsbooks, where CPA payouts of $100-$300 per depositing customer are standard.

What Kalshi does offer:

• Refer-a-Friend program: $10-$25 per referral who completes KYC and trades $10+ within 30 days
• Referral cap: Approximately 10 referrals per user
• Promo code partnerships: Available through direct outreach to Kalshi’s business development team

The referral economics are not viable for publishers at scale. A site driving 1,000 clicks to Kalshi might convert 50-100 signups (given KYC friction), of which perhaps 30-50 complete a qualifying trade, yielding $300-$1,250 in total referral revenue. Compare that to a sportsbook sending the same traffic: 200-300 signups, 150+ first deposits, $15,000-$45,000 in CPA revenue.

Publishers monetizing prediction market content should set realistic expectations. The affiliate infrastructure for prediction markets is years behind sportsbooks.

Key Takeaways

• Kalshi is the only CFTC-regulated prediction market exchange in the US, with DCM status providing segregated funds, federal oversight, and structural protections unavailable on unregulated platforms.
• Distribution through Robinhood, Webull, and Interactive Brokers gives Kalshi reach that no competitor matches, bypassing the KYC conversion bottleneck for users with existing brokerage accounts.
• Three public controversies in late 2025 and early 2026 (payout dispute, insider trading suspension, class-action lawsuit) deserve scrutiny but should be evaluated in the context of CFTC-regulated operations.
• Sports contracts are restricted in 10 states (AZ, CT, IL, MA, MD, MI, MT, NJ, NV, OH). Non-sports contracts are broadly available.
• No formal affiliate program exists. The Refer-a-Friend program caps around 10 referrals at $10-$25 each. Publishers should not expect sportsbook-level CPA economics.

For a full comparison of prediction market platforms, see our best prediction markets guide.

Track Kalshi contract prices, volume, and cross-platform comparisons on our live dashboard.

Responsible Trading

Event contracts are derivatives instruments that carry risk of total loss. Never trade with funds you cannot afford to lose. Kalshi contracts are regulated financial products, not entertainment — treat them with the same discipline you would apply to futures or options trading. If you or someone you know has a problem with compulsive trading, contact the National Council on Problem Gambling at 1-800-522-4700.