Federal Court Legalizes Betting on U.S. Elections; Kalshi Prevails Over CFTC

Oct 2, 2024, 03:01 PM

A federal appeals court ruled on October 2, 2024, that betting on U.S. congressional and presidential elections is lawful, allowing platforms like Kalshi to legally offer prediction markets on the outcomes of upcoming elections. The court's decision rejects the Commodity Futures Trading Commission's (CFTC) effort to block such markets and lifts the pause requested by the CFTC, marking a significant victory for Kalshi over the regulatory body. This ruling comes just five weeks before the November 5 elections, clearing the way for Americans to legally wager on which party will control each house of Congress and the outcome of the presidential race. The decision puts prediction markets in the spotlight and sets the stage for a surge in betting activity.