Kalshi Introduces New Political Betting Options After Court Ruling
Following its federal court victory earlier this month, Kalshi has introduced more than 25 new political betting contracts covering various U.S. events, allowing people to bet on the presidential election, Senate races, and the Electoral College.
Donald Trump vs Kamala Harris in 2024 US election. Kalshi increases political betting markets following court ruling.
LISTEN TO THIS ARTICLE:However, Kalshi is still engaged in legal battles with the Commodity Futures Trading Commission (CFTC) over the legality of political betting contracts.
More than $3 Million Bet in a Week
On October 2, a federal appeals court overturned a ban that had previously prevented Kalshi from offering bets on congressional races. In response, the company expanded its offerings to include wagers on both presidential and Senate elections. By October 9, over $3 million had been placed on the platform, with a large portion of the bets centered around whether Vice President Kamala Harris or former President Donald Trump would win the presidency.
Kalshi’s CEO, Tarek Mansour, said that there is a growing demand for political betting. He explained that the company always intended to provide these contracts but was delayed due to objections by the CFTC. Mansour claimed that the contracts give users a form of financial protection by allowing them to hedge against potential political outcomes, drawing a comparison to how investment banks group trades to guard against market fluctuations tied to election results.
Despite Mansour’s defense, the CFTC remains opposed to political betting contracts. The agency has expressed concerns about the potential impact on the integrity of elections, warning that turning political races into betting commodities could erode public confidence in democratic processes. In its latest legal filings, the CFTC also questioned the significance of some of Kalshi’s contracts, challenging the company’s assertion that they reflect key events.
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Kalshi Insists Political Contracts Are Legal
Kalshi, however, insists that its operations are fully compliant with the law and subject to stringent oversight. Mansour stated that the platform maintains clear communication with federal authorities and closely monitors customer activity. He dismissed concerns that the contracts could undermine election fairness, arguing that any attempts to manipulate outcomes through betting would be costly and short-lived, as market corrections would quickly address any pricing discrepancies.
The CFTC is calling for guidelines to govern political betting and although Kalshi has won several legal victories, the broader issue of political betting in the U.S. remains unresolved.
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