A federal judge handed down a decision Thursday that, according to several reports, could potentially open the door for legal betting on United States elections.
The ruling rejected the Commodity Futures Trading Commission’s appeal of a decision last week that ruled Kalshi — a startup predictions market that allows people to place wagers on world events — could offer contracts on this year’s elections.
The CFTC had argued that election contracts “fail to serve the economic purpose of the futures markets.” Others noted it could impact the integrity of elections.
Thursday’s decision lifted a temporary stay had been in effect after the initial ruling. The CFTC has already announced it will appeal, but, as of now, the public can purchase contracts on which party will win control the Senate and House of Representatives.
Kalshi cofounder Luana Lopes Lara took to social media to celebrate the decision.
"Election markets are now legal in the United States," she posted on X. "It feels like a dream for us to say it. Infinitely honored and humbled to bring these markets back to the US after 100 years."
On its website, Kalshi describes the company as the first CFTC regulated exchange dedicated to trading on the outcome of future events. It also states that they accept Event Contracts of topics including economics, culture, weather, scientific advancements, and traditional financial markets such as commodities, forex, S&P and NASDAQ indices.
