How does Kalshi payout work?

Winning contracts settle automatically at $1 per share on resolution. Losing contracts go to $0. Funds land in your USD cash balance immediately and can be withdrawn to your bank via ACH.

How does Kalshi betting work for sports?

Sports markets on Kalshi work like every other Kalshi market — you buy Yes or No on a game or season outcome instead of taking a moneyline against a house. Because Kalshi is an exchange, prices update as other traders enter and exit, so you can sell before resolution to lock in a profit or cut a loss.

How does Kalshi make money if it's not a sportsbook?

Kalshi charges a small, scaled trading fee per contract disclosed on the order ticket. It does not take the other side of your trade, so there is no built-in sportsbook vig on the line.

How does Kalshi work for taxes?

Kalshi issues a 1099 each January covering your net event-contract proceeds. Texans owe federal income tax only — Texas has no state income tax and no state gambling tax.

How Does Kalshi Work? A Plain-English Guide (2026)

The one-sentence version: Kalshi lets you buy a Yes or No share in a question like "Will the Cowboys win the NFC East?" — if you're right when the season ends, each share pays $1; if you're wrong, it pays $0. Your entry price is your risk.

The Yes/No mechanic

Every Kalshi market resolves to Yes or No. Prices trade between $0.01 and $0.99, and they add up: if Yes is at $0.62, No is at $0.38. Think of the price as a live probability — $0.62 means the market thinks the event is 62% likely.

You can buy either side. Buy Yes at $0.62 and hold to resolution: if the event happens, you get $1 back per share ($0.38 profit). If it doesn't, you get $0 (lose your $0.62). Buy No at $0.38 and it flips.

It's an exchange, not a sportsbook

Every trade on Kalshi matches you against another trader, not against the house. If you buy Yes at $0.62, somebody else is selling Yes to you at that price (equivalently, buying No at $0.38). Kalshi runs the order book and settles the contracts — it doesn't take a directional position.

The practical difference vs a sportsbook: there's no vig baked into the line. A -110 sportsbook line costs you about 4.5% just to enter. On Kalshi, you pay a transparent per-contract fee (typically well under 1% at retail size) and get the mid-market price.

Selling before resolution

You don't have to wait for the event. If you bought Yes at $0.30 and the price runs to $0.70, you can sell into the order book for a $0.40-per-share profit right now. This is the biggest structural difference from a traditional bet — Kalshi is a real market with real live prices you can exit at any time.

How Kalshi handles fees, payouts, and taxes

Fees: Scaled per-trade fee shown on the ticket before you confirm — peaks around 0.7% one-way.
Payouts: Automatic on resolution. Winners get $1 per share; losers get $0. Cash lands in your USD balance instantly.
Withdrawals: Free ACH to your linked US bank, 1–3 business days.
Taxes: Kalshi issues a 1099 in January. Texans owe federal only — no state income tax, no state gambling tax.

What Kalshi markets cover

Anything a regulator will let them list: NFL, NBA, MLB, and NCAA games; presidential and Senate races (post their 2024 court win); CPI and Fed rate decisions; hurricane landfalls and daily temperatures; Oscars; and hundreds more. See our weather, politics, and sports guides for live examples.

Try it with $10

Legal for Texans 21+, CFTC-regulated, USD-settled. See the full 5-minute walkthrough in our Texas how-to.

Trade on Kalshi

Sources & references

More: Fees explained · How to withdraw · Taxes (Texas)

Frequently asked questions

Kalshi is a CFTC-regulated exchange where you buy Yes or No shares in a real-world question between $0.01 and $0.99. If your side is right when the event resolves, each share pays $1. The difference between what you paid and $1 is your profit.