Excitement quickly turned to disappointment as legal betting on the outcome of U.S. Congressional elections was suddenly put on hold by a federal appeals court, just hours after it had been approved to begin.
The Court of Appeals for the District of Columbia Circuit issued an order Thursday night, temporarily freezing the matter until they could consider and rule on the issue. The unexpected decision left many wondering about the fate of their bets and the future of election betting.
Just a few hours earlier, U.S. District Court Judge Jia Cobb had given the green light for New York startup company Kalshi to offer bets on the November elections, specifically on which party would gain control of the House and Senate. The company wasted no time in launching their markets and accepting bets, or “contracts” as they called them.
However, all bets came to a sudden halt with the Thursday night order from the appeals court. The uncertainty loomed over what would happen to the bets that had already been placed, as both Kalshi and the commission remained silent on the matter.
The ruling came after the Commodity Futures Trading Commission raised concerns about the potential harm of allowing election bets, citing the risk of manipulation for financial gain. Prices on Kalshi’s predictive contracts had fluctuated throughout the brief period they were live, offering bettors the chance to wager on the outcomes of the elections for a potentially lucrative return.
As Friday arrived, the elections category on Kalshi’s website was conspicuously absent, leaving many to wonder if election betting would return in the future. The sudden suspension of legal betting on U.S. Congressional elections left both bettors and observers with more questions than answers, showcasing the complexities and uncertainties surrounding the intersection of politics and gambling.
