Legal betting on the outcome of U.S. Congressional elections was abruptly put on hold by a federal appeals court just hours after it began. The Court of Appeals for the District of Columbia Circuit temporarily froze the matter following a federal judge’s decision to allow New York startup company Kalshi to offer bets on which party would win control of the House and Senate in November. The company’s markets went live before the court order halted further betting activities.
The ruling came in response to an appeal by the Commodity Futures Trading Commission, citing concerns about potential manipulation of the election for financial gain. Prices on Kalshi’s predictive contracts fluctuated during the brief period they were available, with bets on the Republicans and Democrats to win control of the Senate and House, respectively.
While the future of existing bets remains uncertain, the decision underscores the regulatory challenges surrounding election betting. The company’s elections category was removed from its website following the court order, leaving the industry in limbo as legal proceedings continue.