A federal judge has paved the way for a start-up company to begin accepting wagers on the outcome of U.S. congressional elections. The Commodity Futures Trading Commission tried to block Kalshi from allowing people to place bets on which political party will take control of Congress in November.
In a lawsuit, the CFTC argued that wagering on U.S. elections is illegal, could harm the integrity of elections in the country, and fails “to serve the economic purpose of the futures markets.”
Washington, D.C. District Judge Jia Cobb disagreed with the agency and ruled that wagering on the outcome of the U.S. election is legal.
“Kalshi’s contracts do not involve unlawful activity or gaming. They involve elections, which are neither,” Cobb wrote in her opinion.
She also refused a request to issue a stay on her ruling while the agency appealed her decision.
Kalshi praised the judge’s ruling.
“Today marks the first trade made on regulated election markets in nearly a century,” Tarek Mansour said in a statement to CNN. “The Kalshi community just made history, and I know we are only getting started!”
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