A federal judge in Washington has ruled in favor of New York-based company Kalshi, allowing them to offer bets on the outcome of Congressional elections. The decision by the Commodity Futures Trading Commission to prohibit such betting was struck down, opening the possibility for betting on U.S. elections which has been off-limits until now. The judge’s reasoning for the ruling is expected to be outlined after a hearing on Thursday.
The commission had previously blocked Kalshi from offering yes-no prediction bets on which party would control the House of Representatives and the Senate, citing concerns about the integrity of elections. However, Kalshi argued that they should be allowed to offer these contracts as the election approaches and the public deserves access to them.
Betting on elections is not legal in U.S. jurisdictions, but is common in Europe and available through foreign websites. If the judge had not paused the matter, Kalshi would have been able to accept bets on its Congressional markets. It remains to be seen if other companies will also seek to offer betting on elections, including the presidential race.
Several major sportsbooks had expressed interest in taking bets on the U.S. presidential elections in 2020 if it were legal to do so. Currently, Vice President Kamala Harris is listed as a slight favorite to win the election by European bookmakers. This ruling marks a significant development in the world of gambling and could open up new opportunities for betting on political events in the U.S.
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