Federal Court Legalizes Election Betting, Kalshi Wins Against CFTC

Oct 2, 2024, 05:26 PM

A federal appeals court has ruled that betting on U.S. elections, including both congressional and presidential races, is lawful. This decision allows prediction market platforms like Kalshi to list contracts for betting on election outcomes, despite opposition from the Commodity Futures Trading Commission (CFTC). The ruling, which comes just one month before the 2024 presidential election, has significant implications for the prediction market industry. Kalshi, which had previously faced a pause on its election contracts, can now resume trading. Judge Patricia Millett noted that the CFTC failed to show that blocking Kalshi would harm the public. The court's decision has sparked debate about the potential impact of election betting on the integrity of the electoral process, including bets on which party will control the House and Senate.