Appeals Court Temporarily Halts Legal U.S. Election Betting

Kalshi's launch of regulated election markets faces a new challenge as the CFTC appeals a federal judge's ruling.

Kalshi launched the first regulated U.S. election betting markets in nearly a century after winning a court case against the Commodity Futures Trading Commission (CFTC).
Judge Jia Cobb ruled that Kalshi's election contracts do not involve unlawful activity or gaming, but the CFTC quickly appealed the decision.
The D.C. Circuit Court of Appeals issued an emergency stay, pausing the betting markets until it can make a ruling on the CFTC's appeal.
Kalshi's markets briefly went live, allowing bets on which party will control the House and Senate, before the appeals court intervened.
The CFTC argues that election betting poses risks to election integrity and public trust, while Kalshi claims the markets provide valuable forecasting data.