Woofun AI data shows that Kalshi and Polymarket processed over $44 billion in transactions during 2025. Monthly volume reached $24 billion by April 2026, surpassing average US sports betting figures. Kalshi earned $263.5 million in fees last year, with annual revenue exceeding $1.5 billion since inception.

Prediction markets utilize binary contracts where platforms facilitate trades without holding risk. Revenue stems from transaction fees, data approvals, API access, and market creation charges. Kalshi operates as a CFTC-registered Designated Contract Market. Polymarket re-entered the US in late 2025 after acquiring QCEX for $112 million, amid ongoing legal challenges regarding gambling classifications in certain states and varying EU MiCA interpretations.