Interactive Brokers Founder Sought to Acquire Kalshi in 2021

Thomas Peterffy, founder and Chairman of Interactive Brokers, attempted to purchase prediction markets platform Kalshi in 2021. Kalshi's co-founder and CEO, Tarek Mansour, disclosed that Peterffy extended an acquisition offer during a meeting at his home, but Mansour and co-founder Luana Lopes Lara declined. Mansour noted in a LinkedIn post that Kalshi was then an early-stage company with minimal users and brand recognition, but Peterffy recognized its potential.

Kalshi has since grown into a significant entity within the prediction markets sector. The company recently secured $1 billion in funding at a $22 billion valuation, led by Coatue Management. Its competitor, Polymarket, is reportedly pursuing a $20 billion valuation. Founded in 2018, Kalshi's prominence increased following the mainstream adoption of event contracts tied to the last U.S. presidential election.

While Polymarket initially led in election betting, Kalshi entered the market after a pivotal legal victory against the Commodity Futures Trading Commission (CFTC), reshaping the U.S. regulatory landscape. Sports wagering remains Kalshi's largest market, drawing legal challenges from established sportsbooks and state regulators. Notably, the current CFTC leadership supports prediction markets and has litigated against state bans.

The sector's growth has prompted brokerages like Robinhood and Interactive Brokers to offer event contracts, often via partnerships with Kalshi. Peterffy has publicly endorsed prediction markets as a vital information source for clients, emphasizing their utility for tracking global economic and demographic trends.