Judge Jia Cobb Clears Way for Kalshi's Election Betting Contracts, CFTC Appeals

Sep 12, 2024, 02:08 PM

A federal judge has cleared the way for Kalshi, a U.S.-regulated prediction market platform, to offer election betting contracts, marking the first time in nearly a century that Americans can legally bet on election outcomes. This decision follows a legal battle with the Commodity Futures Trading Commission (CFTC), which had previously blocked Kalshi from listing these contracts. Judge Jia Cobb ruled that the CFTC exceeded its authority in prohibiting the prediction markets. Despite the court's ruling on September 6, the CFTC has filed an emergency motion for a stay, delaying the launch of these contracts until at least Friday. Kalshi argues that further delays would cause irreparable harm to its business. The case is expected to be appealed to the D.C. Circuit, and a hearing is set for Thursday to consider the CFTC's request for a stay. Meanwhile, Interactive Brokers has announced plans to launch election betting contracts next week, further indicating the mainstream acceptance of election prediction markets.