Federal judge overturns CFTC order to block Kalski election betting
Americans can now wager on who will take Congress in the upcoming election.
Federal Judge Jia Cobb recently ruled in favor of allowing Americans to bet on the outcome of the upcoming US election, according to a recent Bloomberg Law report.
The decision overturned a previously established restriction by the Commodity Futures Trading Commission (CFTC). The CFTC had ordered Kalshi not to offer derivatives that would allow players to wager on the election.
Lawmakers expressed concern for voters and noted that rebuilding trust should be prioritized over a focus on wages.
They also said that allowing election betting could potentially create mistrust in the election process and sent a letter to the CFTC that outlined their concerns.
The letter was signed by several government leaders, including Senators Jeff Merkley, Richard Blumenthal, Chris Van Hollen, Elizabeth Warren and Sheldon Whitehouse, along with (Representatives Eleanor Holmes Norton, Jamie Raskin and John Sarbanes.
The letter stated, “As we approach the 2024 election, voters already face a political system that allows the richest individuals and corporations to funnel dark money into campaigns without disclosure. The threat of violence and extremism is high, and the US remains a target for foreign actors who have sought to meddle in our elections.
“The last thing that voters heading to the polls need are bets waged on the outcome of that election. Voters need action, as proposed by the CFTC in this rule, to restore trust. Elections are not a for-profit enterprise. Without this rule, voters will wonder if their vote mattered, and whether the outcome of the election was influenced by big money bets.”
Kalshi expressed its excitement to offer players in the US another wagering option.
The group told Bloomberg that the approval is “a watershed moment.”
Kalshi Co-Founder and CEO Tarek Mansour elaborated further by saying, “Election markets are now legal in the United States for the first time in 100 years.”
The CFTC has the option to file an appeal. However, the organization has not commented on the recent ruling.
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