US Appeals Court Allows Kalshi to Offer Election Betting
A US federal appeals court has ruled against the Commodity Futures Trading Commission (CTFC), allowing prediction market Kalshi to continue offering contracts on the US presidential election outcome. The decision has sparked debate and concern among critics and industry figures.
The CTFC argued that such betting unduly influences election results, with Chairman Rostin Benham expressing worry about the organization becoming an 'election cop'. However, the court ruled that the CTFC did not provide sufficient evidence that Kalshi's operation would likely cause harm to election integrity.
In response to US laws, Kalshi has banned non-US accounts, while Polymarket blocks US IP addresses. Both platforms have taken these steps to comply with regulations. Meanwhile, Polymarket is seeking additional funding due to increased activity and election bets.
The case was dismissed without prejudice, leaving room for potential future legal challenges if new evidence arises. Organizations like state regulators and Native American tribes could potentially submit new evidence against Kalshi in court, potentially leading to further legal disputes.
The ruling allows Kalshi to continue offering election outcome contracts, but the debate surrounding election betting and its influence on results remains active. As the US presidential election approaches, prediction markets like Kalshi and Polymarket will continue to operate under scrutiny, with the potential for future legal challenges.
