Kalshi Surpasses DraftKings Users as Startup Captures 27% of World Cup Bets
Startup Kalshi had more daily app users than DraftKings or FanDuel during the World Cup as prediction markets claimed 27% of US sports betting. The milestone underscores how a two-year-old startup upended a regulated industry through federal regulatory arbitrage and aggressive marketing.
Key Takeaways
- Startup Kalshi had more daily app users than DraftKings or FanDuel during the World Cup as prediction markets claimed 27% of US sports betting.
- The milestone underscores how a two-year-old startup upended a regulated industry through federal regulatory arbitrage and aggressive marketing.
Mentioned
Key Intelligence
Key Facts
- 1Prediction markets accounted for 27% of legal US sports-betting volume during the first month of the 2026 World Cup, up from 9% at the beginning of the year, per H2 Gambling Capital.
- 2Kalshi doubled its previous record trading volume (set during the Knicks' playoff run) and saw volumes nearly 10x higher than early 2026 levels during the World Cup.
- 3Kalshi’s mobile app had more daily users than DraftKings or FanDuel throughout the tournament, according to Apptopia.
- 4Less than two years ago, prediction markets could not legally offer sports wagers, and as recently as last summer, gambling executives considered them fringe upstarts.
- 5Kalshi and Polymarket have leveraged a favorable CFTC regulatory environment and resisted state-level legal challenges to expand their sports offerings.
- 6Aggressive marketing campaigns during the World Cup spotlighted prediction markets, making them ubiquitous in tournament coverage and driving mass adoption.
Kalshi
Company- Founded
- 2020
- Funding
- $170M+
- Users
- 1M+
Largest US prediction market, CFTC-regulated exchange allowing users to trade on event outcomes. Backed by Sequoia Capital and others.
Up from 9% at year start; Kalshi led the charge
Analysis
- Captured 27% of sports bets and overtook incumbents in record time
- CFTC preemption creates a durable regulatory moat
- Lower cost structure and exchange model appeal to digital natives
- State regulators may mount a coordinated legal challenge
- Reliance on favorable federal regulatory environment
- Incumbents could launch competing exchange features quickly
Analysis
For startup founders and VCs, Kalshi’s World Cup performance is a textbook case of regulatory entrepreneurship. In under two years, the company went from being barred from sports to capturing more daily users than the two largest sports betting incumbents, showcasing how a nimble startup can exploit a friendly federal regulator to outmaneuver state-level gatekeepers and entrenched incumbents.
The 2026 FIFA World Cup has emerged as a watershed moment for the US sports betting industry, with prediction-market exchanges capturing an estimated 27% of all legal US sports-betting volume during the tournament's first month, according to H2 Gambling Capital. This marks a dramatic leap from just 9% at the start of the year and signals a fundamental shift in how Americans wager on sports. The surge, led by CFTC-regulated Kalshi and crypto-native Polymarket, is reshaping the competitive landscape and threatening the dominance of traditional sportsbooks like DraftKings and FanDuel.
The surge, led by CFTC-regulated Kalshi and crypto-native Polymarket, is reshaping the competitive landscape and threatening the dominance of traditional sportsbooks like DraftKings and FanDuel.
Kalshi, the largest prediction market, has repeatedly shattered its own trading records during the World Cup. Its daily trading volume doubled the peak it hit just a week before the tournament during the New York Knicks' playoff run, and is running at nearly 10 times the levels seen early in 2026. Even more telling, analytics firm Apptopia reports that Kalshi’s mobile app attracted more daily users than either DraftKings or FanDuel for the duration of the tournament. This milestone underscores how quickly prediction markets are converting sports fans from traditional fixed-odds betting to exchange-based wagering on outcomes, player performances, and in-play events.
The regulatory backdrop is crucial to understanding this disruption. Only two years ago, prediction markets were not permitted to offer sports-related contracts at all. That changed after the Commodity Futures Trading Commission (CFTC), their primary federal regulator, signaled a welcoming approach, allowing platforms to list a growing array of sports-event contracts. Last summer, gambling executives brushed off the threat, confident that state-level gambling regulators would erect barriers. Instead, Kalshi and Polymarket have successfully fended off state lawsuits, leaning on CFTC preemption and arguing their products are distinct from traditional sports betting. This regulatory asymmetry gives them a nimbleness that legacy operators, encumbered by state-by-state licensing and tax regimes, cannot easily match.
What to Watch
The financial implications are stark. If prediction markets sustain even a fraction of this World Cup-driven market share, they could siphon billions in annual revenue from major sportsbooks. DraftKings and FanDuel, which have spent enormous sums on marketing and customer acquisition, now face a competitor with lower cost structures and a potentially more engaging product design. Moreover, prediction markets’ exchange model allows for continuous liquidity and the ability to trade in and out of positions, a feature that fixed-odds betting cannot replicate. The comparison is not exact—prediction markets and gambling companies calculate activity differently, and sportsbooks have not yet released recent internal numbers—but the trend is undeniable.
Looking ahead, the World Cup’s domestic spotlights have amplified the momentum, yet the growth appears durable. Aggressive marketing campaigns made prediction-market brands ubiquitous during round-the-clock coverage, introducing millions to the concept. The upcoming NFL season, the largest US betting market, will be a critical test. If prediction markets continue to gain share, we may see traditional bookmakers scrambling to adopt exchange features or acquire promising startups. For now, the CFTC’s light-touch stance remains the wildcard; a policy shift could alter the landscape overnight, but the trajectory suggests prediction markets have passed the point of no return.
Cite This Page
"Kalshi Surpasses DraftKings Users as Startup Captures 27% of World Cup Bets." Startup Intelligence Brief, July 19, 2026. https://getstartupbrief.com/story/kalshi-startup-27-world-cup-bets
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