Court clears the way for Americans to legally bet on US elections
FILE-People watch the presidential debate during a debate watch party at Shaw’s Tavern on September 10, 2024 in Washington, D.C. (Photo by Alex Wong/Getty Images)
A federal judge has ruled that people can place wagers on the upcoming elections in November.
Kalshi, a New York startup company, started taking bets on the results of the November congressional elections after a judge refused to block the organization from doing it.
U.S. District Court Judge Jia Cobb allowed Kalshi temporarily to offer prediction contracts nationwide— yes-or-no bets — on which political party will win control of the Senate and the House in November, according to the Associated Press.
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Prices on Kalshi's predictive contracts varied Thursday afternoon. By mid-afternoon, a wager on the Republicans to win control of the Senate was priced at 76 cents; a $100 bet would pay $129. A bet on the Democrats to win control of the House was priced at 63 cents, with a $100 bet paying out $154.
The AP reports that Kalshi did not specify if they plan to offer wagers besides the one listed for congressional races. There is also no word on if the company will accept bets on the presidential race between Vice President Kamala Harris and Donald Trump.
It is also unknown whether sports books or online casinos will offer similar political wagers following the judge’s ruling.
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However, this trend may not last as The Commodity Futures Trading Commission, an independent federal body which in 2023 banned Kalshi from offering such bets, told the AP that they will appeal the judge’s ruling, mentioning the potential of people trying to manipulate the election for financial reasons.
Kalshi is not the first to offer legal wagers on U.S. elections. The AP reported that West Virginia allowed these kinds of bets for one hour in April 2020 before reversing itself and canceling those betting markets, deciding it had not done the proper research ahead of time.