A federal appeals court in Washington, DC has ruled that a online betting platform Kalshi can offer legal political gambling ahead of the US presidential election.
The panel of three judges denied the Commodity Futures Trading Commission’s (CFTC) request to halt a previous ruling that allows the platform to launch political betting markets while an appeal is heard.
Kalshi launched its political futures contracts on September 12th after US District Judge Jia Cobb in Washington DC denied the commission’s attempt to prevent the platform from offering them. The CFTC swiftly appealed the ruling. Subsequently, the DC Circuit Court of Appeals temporarily halted Kalshi from offering the bets while reviewing the agency’s request for a temporary suspension.
The regulator had argued that political wagers are illegal and that any markets offered could harm the integrity of the election.
CFTC General Counsel Rob Schwartz said at the hearing:
“I don’t want to be too dramatic, but we live in a country where tens of millions of Americans believe the last presidential election was stolen.”
However, the panel noted that the commission had failed to fully explain how the election would be affected and denied the request.
Judge Patricia Millett wrote for the DC Circuit Court of Appeals:
“In short, the concerns voiced by the Commission are understandable given the uncertain effects that Congressional Control Contracts will have on our elections, which are the very linchpin of our democracy.
But whether the statutory text allows the Commission to bar such event contracts is debatable, and the Commission has not substantiated that risks to election integrity are likely to materialize if Kalshi is allowed to operate its exchange during the pendency of this appeal.”
The court noted that the regulator can make another bid to halt the ruling while the appeal takes place, but that any further attempt would require more detailed proof that the election would be negatively impacted.
Following the ruling, Kalshi relaunched its markets for the presidential election and which party will gain control of the House and Senate in 2025. The platform allows for bets of as much as $100 million on its election markets.
Kalshi CEO Tarek Mansour said in a statement:
“We are incredibly honored to bring safe, regulated, and trusted election markets to the US. This week is the dawn of a new era for financial markets.”
Olivia has worked as an editor and writer for major brands across multiple niches. She now focuses on the iGaming and sports betting industries.
In a groundbreaking decision, the Federal Court has ruled that political betting is now legal in the United States. This decision comes after years of debate and controversy surrounding the issue, with many arguing that allowing betting on political outcomes could have negative consequences for the democratic process.
However, supporters of political betting argue that it can actually enhance the political process by increasing engagement and interest in elections. By allowing individuals to put their money where their mouth is, so to speak, it can incentivize them to become more informed about political issues and candidates.
Political betting has long been popular in other countries, such as the United Kingdom, where it is a common practice during elections. Now, with this ruling, Americans will have the opportunity to participate in this form of betting as well.
It is important to note that there are still regulations in place to ensure that political betting is conducted in a fair and responsible manner. For example, individuals under the age of 18 will not be allowed to participate, and there will be limits on the amount of money that can be wagered.
Overall, this decision marks a significant shift in the way that Americans can engage with politics. Whether you are a seasoned political junkie or just someone looking to add some excitement to election season, political betting is now a viable option for those interested in putting their predictions to the test.
