Launched in July 2021, it offers a platform where both retail and institutional traders can place trades on various future events, including economic indicators, weather patterns, awards, as well as political and legislative outcomes.

[1][2] The idea for the company emerged during their tenure as financial analysts, where they identified challenges faced by investors attempting to hedge their investments amidst uncertainties such as the Brexit referendum.

The founders note that the absence of a direct safeguard against unfavorable outcomes was what prompted them to envision a platform that would allow investors to engage in wagers on future events, providing a means to hedge uncertainties and capitalize on insights.

[3] After attempting for 18 months, Mansour and Lara obtained a federal license from the Commodities Futures Trading Commission (CFTC) on November 3, 2020,[4] registering as a designated contract market.

[9] As a trading exchange, Kalshi allows both retail and institutional traders to place trades on various future events, spanning topics like weather and climate change,[8][10] the Oscars,[11] tax changes,[12] inflation,[13] music festival cancellations,[14] album sales and digital streaming milestones,[15] Covid vaccine uptake,[1] recession likelihood,[16] and the potential for the United States to default on its debt by the year's end.

[11] On October 2, 2024, a federal appeals court in Washington D.C. allowed Kalshi to revive the first fully regulated election markets in the U.S. by lifting a temporary freeze on trading.

Following the favorable ruling, the platform listed over two dozen new options related to political outcomes, including the presidential race, popular vote, Electoral College margins, and individual Senate contests.

Commissioner Caroline Pham, one of the CFTC's top two Republican officials, dissented on the decision to review Kalshi's political event contracts in August 2022.

The company maintains that its contracts serve the public interest by offering accurate election forecasting data and enabling individuals to hedge against various outcomes.

[26] In June 2023, Kalshi proposed a new plan that would allow hedge funds and other major Wall Street firms to wager up to $100 million on which US political party would control Congress.

The two Republican commissioners, who were in the minority on the CFTC's board, dissented against the prolonged process, arguing that the question of whether Kalshi's products constitute prohibited "gaming" should be addressed directly through a clear rule.

[30] On September 12, 2024, DC District Court Judge Jia Cobb rejected the CFTC's attempt to delay the company's congressional control contracts, ruling in favor of Kalshi.

Cobb stated that the agency had exceeded its authority by blocking these contracts, emphasizing that Kalshi's offerings do not constitute illegal activity or gaming, as they pertain to elections.

The company warned that pausing Cobb's ruling would severely impact its operations, describing the CFTC's request as a tactic to stall their progress, while also noting the rise of the unregulated prediction market Polymarket following a recent presidential debate.

This ruling enabled Kalshi to offer trading ahead of the November 5 elections and may set a precedent for other firms looking to enter the prediction market space.

[26] Kalshi contends that bringing political trading to their platform would improve oversight and accessibility, transforming a historically underground practice into a legitimate option for everyday Americans.

This move aims to help individuals navigate election-related risks, such as the effects of Congress' composition on tax policy, by providing tools for financial hedging.

In August 2023, in a letter to the CTFC, senators Jeff Merkley, Sheldon Whitehouse, Ed Markey, Elizabeth Warren, Chris Van Hollen and Dianne Feinstein urged the CFTC to reject Kalshi's proposal, raising concerns over electoral integrity.