{"id":291097,"date":"2023-09-25T13:56:50","date_gmt":"2023-09-25T18:56:50","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=291097"},"modified":"2023-09-26T14:28:09","modified_gmt":"2023-09-26T19:28:09","slug":"us-regulators-block-political-betting-proposal","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/us-regulators-block-political-betting-proposal\/","title":{"rendered":"US Regulators Block Political Betting Proposal\u00a0"},"content":{"rendered":"

Federal regulators have closed the door on a Congressional betting market, but the fight will likely continue in federal court.<\/p>\n

\"CFTC\"
The Commodity Futures Trading Commission building in Washington, DC. The CFTC this month denied a proposal from KalshiEX LLC to offer contracts based on control of Congress. (Image: CFTC)<\/figcaption><\/figure>\n

The Commodity Futures Trading Commission on Friday announced that it was rejecting a proposal from KalshiEX LLC to offer a political event contract based on which party controls Congress.<\/p>\n

After reviewing the complete record, the CFTC determined the contracts involve gaming and activity that is unlawful under state law and are contrary to the public interest,\u201d<\/strong> the agency said in a statement<\/a> announcing the decision.<\/p><\/blockquote>\n

Kalshi allows traders to bet on the outcome of various events in politics, pop culture or the economy.<\/p>\n

In June, Kalshi sought CFTC approval of its congressional contract after failing to win the agency\u2019s blessing<\/a> for a similar market last year.<\/p>\n

The disapproval announced Friday is a setback for Kalshi, but it is likely not the end of the road.<\/p>\n

Court Challenge Possible<\/b><\/h2>\n

Kalshi is evaluating its next steps and has not announced its plans. But a likely next move would be to file a lawsuit attempting to overturn the CFTC\u2019s decision.<\/p>\n

In a series of social media posts following the CFTC\u2019s announcement, Kalshi CEO Tarek Mansour said the decision was \u201carbitrary and capricious,\u201d<\/a> hinting at an argument the company likely would make in upcoming litigation.<\/strong><\/p>\n

Federal law requires agencies like the CFTC to make well-reasoned decisions supported by evidence. Convincing a judge that the agency acted arbitrarily would be key to Kalshi\u2019s legal strategy.<\/p>\n

We are evaluating options and are considering what the best course of action is,\u201d<\/strong> Mansour wrote<\/a>. \u201cWe believe we are right and are considering what it will take to make the government see what we see.\u201d<\/strong><\/p><\/blockquote>\n

For now, Kalshi is not offering a congressional elections contract on its platform, but other markets remain active. Contracts were being traded on events including the end of the Hollywood writer\u2019s strike<\/a> and the next federal interest rate<\/a>, among others.<\/p>\n

Given the growing likelihood<\/a> that Congress cannot pass an appropriations bill to keep the government open past Sept. 30, when current funding expires, Kalshi has expanded its markets<\/a> related to the risk of a shutdown.<\/p>\n

PredictIt Recommended<\/b><\/h2>\n

Political betting is also currently available through PredictIt \u2013 an avenue Mansour himself recommended<\/a>. PredictIt has been engaged in its own face off with the CFTC, but it has so far been successful in challenging the agency in court<\/a>.<\/p>\n

New contracts<\/a> have been appearing on PredictIt in recent weeks, signs of the site\u2019s confidence following the recent court victories.<\/strong><\/p>\n

PredictIt had 20 active markets as of Monday, including the winner of this year\u2019s Kentucky governor\u2019s race<\/a>\u00a0and next year\u2019s GOP presidential primary in New Hampshire<\/a>. On the congressional front, the site is offering contracts tied to the Arizona<\/a> and Ohio<\/a> Senate races as well as the question of whether New York Democratic Rep. Alexandria Ocasio-Cortez<\/a> files to run for president next year.<\/p>\n

Notably, PredictIt is not taking bets on which party will control the House or Senate, the subject of Kalshi\u2019s CFTC denial.<\/p>\n","protected":false},"excerpt":{"rendered":"

Federal regulators have closed the door on a Congressional betting market, but the fight will likely continue in federal court. The Commodity Futures Trading Commission on Friday announced that it was rejecting a proposal from KalshiEX LLC to offer a political event contract based on which party controls Congress. After reviewing the complete record, the […]<\/p>\n","protected":false},"author":102,"featured_media":224976,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[83108,61,13592],"tags":[82218,82529,82192,82190],"acf":[],"yoast_head":"\nUS Regulators Block Political Betting Proposal\u00a0 - Casino.org<\/title>\n<meta name=\"description\" content=\"Federal regulators have closed the door on a Congressional betting market, but the fight will likely continue in federal court. 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