US Election Betting Halted Again After Appeals Court Ruling
Date: 2024-09-16 Author: Alex Crawford Categories: SPORTS BETTING
Political betting in the US moved closer to legalization last week when a federal judge in Washington approved election contracts. The landmark ruling effectively bolstered Kalshi, a platform known for offering live bets on real events, in its legal battle with the Commodity Futures Trading Commission (CFTC).
One Step Forward, Two Steps Back
Despite Judge Gia Cobb’s ruling, Kalshi’s victory was short-lived. Just hours after the platform was cleared to launch bets on political events like the upcoming presidential election between Donald Trump and Kamala Harris, it faced a new hurdle.
The Associated Press reported that the U.S. Circuit Court of Appeals issued a temporary injunction on Thursday, halting Kalshi’s operations once again. The order halts betting on US elections. The temporary block follows a motion filed by the CFTC, which appealed Judge Cobb’s ruling.
In its statement, the Commission expressed concern that betting on the outcome of political events could have serious consequences in the run-up to elections. The CFTC also noted the risks of potential abuse, where dishonest individuals could attempt to manipulate public opinion through betting.
The Future of Political Betting Is Again in Question
The future of political betting in the US is once again in doubt following the Court of Appeals’ decision. The court confirmed that it would hear the CFTC’s appeal, prompting Kalshi to temporarily suspend its political contract offerings. However, no specific timeframe was given for the hearing.
Kalshi is a prediction trading platform, and political betting is part of its offerings. Its “future contracts” operate in a legal limbo, as the US lacks sufficient regulation in this area.
Despite this, the platform has repeatedly come under criticism and scrutiny from the CFTC. The latest ruling has once again cast doubt on the future of election betting in the US.
