{"id":330010,"date":"2024-09-09T07:48:00","date_gmt":"2024-09-09T12:48:00","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=330010"},"modified":"2024-09-09T10:25:50","modified_gmt":"2024-09-09T15:25:50","slug":"kalshi-can-offer-contracts-on-us-election-rules-federal-judge","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/kalshi-can-offer-contracts-on-us-election-rules-federal-judge\/","title":{"rendered":"Kalshi Can Offer Event Contracts on US Election, Rules Federal Judge"},"content":{"rendered":"

A federal judge in Washinton, DC on Friday cleared the way for financial exchange and prediction platform Kalshi<\/a> to offer markets on the outcome of the US election via event contracts.<\/p>\n

\"Kalshi,
Kalshi founders Tarek Mansour, left, and Luana Lara. Mansour hailed a judge\u2019s ruling Friday but says a Commodity Futures Trading Commission (CFTC) motion to stay the decision would cause \u201cirreparable harm\u201d to the company. (Image: Kalshi\/Luana Lara via Forbes)<\/figcaption><\/figure>\n

The Commodity Futures Trading Commission (CFTC), which regulates the exchange, had previously ordered Kalshi<\/a> not to offer this product on the grounds that betting on elections is illegal in the US.<\/p>\n

Kalshi\u00a0sued the CFTC\u00a0last year, arguing that it had overreached its authority when it blocked the contracts.<\/p>\n

What\u2019s an Event Contcrat?<\/strong><\/h2>\n

An event contract is a type of derivative that allows users to speculate on the outcome of a specific event, whether that be monetary policy, the Oscars, or which party will win control of Congress. They\u2019re usually formatted for putting money on \u201cyes\u201d or \u201cno\u201d outcomes before expiring.<\/p>\n

\n

Unlike traditional futures contracts, event contracts are priced according to the perceived likelihood of events occurring. That makes them controversial for their similarity to gambling. In the UK, for example, they are overseen by the UK Gambling Commission (UKGC) rather than financial regulators.<\/p>\n<\/div>\n

In addition to providing economic hedging benefits, political event contracts harness the power of free markets to produce high-quality predictive data. In countries where fixed-odds betting on political events is permitted, sportsbooks have regularly proved to be more accurate predictors of election results than polls.<\/p>\n

The CFTC Strikes Back <\/strong><\/h2>\n

Judge Jia Cobb didn’t give her reasons for siding with Kalshi, which she said she would lay out in a forthcoming opinion.<\/p>\n

\u201cElection markets are now legal in the United States for the first time in 100 years. Americans will finally be able to trade the election on a US-regulated market,\u201d the startup\u2019s CEO and co-founder, Tarek Mansour, said in a statement.<\/p>\n

Hours later on Friday, the CFTC filed an emergency motion asking the judge to stay the decision for two weeks. The regulator said in the motion that it was in \u201cthe unenviable position of finding out that it has lost but without any explanation or reasoning.\u201d<\/p>\n

At a time when distrust in elections is at an all-time high, even a short listing of Plaintiff\u2019s contracts, and\/or similar election contracts on other DCMs, could harm public perception of election integrity and undermine confidence in elections,” CFTC lawyers wrote.<\/p><\/blockquote>\n

In a filing Sunday, Kalshi called the motion \u201cmeritless\u201d and said granting it would cause \u201cirreparable harm\u201d to the company. Kalshi had \u201cstaked its future\u201d on the litigation and on being able to participate in the forthcoming election markets, the company added.<\/p>\n

“The Commission lost, fair and square, on the law,” Kalshi said in its Sunday filing. “It should not be allowed to snatch a procedural victory from the jaws of defeat by running out the clock.”<\/p>\n","protected":false},"excerpt":{"rendered":"

A federal judge in Washinton, DC on Friday cleared the way for financial exchange and prediction platform Kalshi to offer markets on the outcome of the US election via event contracts. The Commodity Futures Trading Commission (CFTC), which regulates the exchange, had previously ordered Kalshi not to offer this product on the grounds that betting […]<\/p>\n","protected":false},"author":36,"featured_media":330011,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[60,61],"tags":[82218,91907,92268,82529],"acf":[],"yoast_head":"\nKalshi Can Offer Contracts on US Election, Rules Federal Judge<\/title>\n<meta name=\"description\" content=\"Prediction market Kalshi can offer contracts on US election but Commodity Futures Trading Commission wants decision stayed.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/kalshi-can-offer-contracts-on-us-election-rules-federal-judge\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Kalshi Can Offer Contracts on US Election, Rules Federal Judge\" \/>\n<meta property=\"og:description\" content=\"Prediction market Kalshi can offer contracts on US election but Commodity Futures Trading Commission wants decision stayed.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/kalshi-can-offer-contracts-on-us-election-rules-federal-judge\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2024-09-09T12:48:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-09-09T15:25:50+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/09\/Kalshi.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"739\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Philip Conneller\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@casinoorgphilc\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Philip Conneller\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/kalshi-can-offer-contracts-on-us-election-rules-federal-judge\/\",\"url\":\"https:\/\/www.casino.org\/news\/kalshi-can-offer-contracts-on-us-election-rules-federal-judge\/\",\"name\":\"Kalshi Can Offer Contracts on US Election, Rules Federal Judge\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/kalshi-can-offer-contracts-on-us-election-rules-federal-judge\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/kalshi-can-offer-contracts-on-us-election-rules-federal-judge\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/09\/Kalshi.jpg\",\"datePublished\":\"2024-09-09T12:48:00+00:00\",\"dateModified\":\"2024-09-09T15:25:50+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/58769b72851c8cf117fb58ca150ebf8b\"},\"description\":\"Prediction market Kalshi can offer contracts on US election but Commodity Futures Trading Commission wants decision stayed.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/kalshi-can-offer-contracts-on-us-election-rules-federal-judge\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/kalshi-can-offer-contracts-on-us-election-rules-federal-judge\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/kalshi-can-offer-contracts-on-us-election-rules-federal-judge\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/09\/Kalshi.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/09\/Kalshi.jpg\",\"width\":1000,\"height\":739,\"caption\":\"Kalshi founders Tarek Mansour, left, and Luana Lara. 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