Appeals Court Judges Yet to Rule on United States Election Betting
Kalshi, a regulated exchange platform that allows trading on real-world events, recently received permission to offer “contracts” on political events following a ruling by Judge Jia Cobb.
US appeals court building. No ruling from the appeals court in election betting case.
LISTEN TO THIS ARTICLE:Court of Appeals Reviews the Case
Yesterday (Thursday, 19 September), the Court of Appeals heard arguments from both sides but did not reach a verdict on the legality of election betting, leaving political betting suspended until a court decision is announced.
During the hearing, a panel of three judges considered the arguments presented by the CFTC and Kalshi. With the upcoming Presidential Election fast approaching, Kalshi is keen to clear this legal obstacle as quickly as possible and resume offering contracts on political outcomes. The platform differentiates its services from traditional betting by using “future contracts”, which is somewhat of a legal grey area.
The CFTC maintains that wagering on election results could compromise the integrity of the democratic process by potentially encouraging manipulation. Their stance is focused on safeguarding the fairness of elections by prohibiting betting.
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No Decision Yet from the Court
As mentioned, no verdict was reached at the recent hearing. Both parties are seeking a resolution before the next election, but the Court of Appeals has not provided a specific timeline for its ruling.
Kalshi briefly offered election outcome contracts before the CFTC’s intervention, during which the platform handled roughly $50,000 in bets. The fate of these contracts hinges on the court’s pending decision. Should Kalshi lose its legal battle, these contracts might be nullified. Conversely, a favorable ruling for the platform could mark the first time Americans are legally able to bet on election outcomes.
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