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The Court of Appeals for the District of Columbia Circuit has temporarily halted the issue of election betting. This follows a recent decision favoring Kalshi, as reported by the Associated Press. The court’s order aims to “temporarily freeze the matter until it can consider and rule on the issue.”
Earlier, Federal Judge Jia Cobb ruled in favor of permitting Americans to place bets on the upcoming US election. However, the Commodity Futures Trading Commission (CFTC) quickly challenged this decision, appealing Cobb’s ruling within hours. Prior to Cobb’s ruling, the CFTC had directed Kalshi to refrain from offering election-related derivatives.
The debate over election betting has prompted significant concern from lawmakers. They argue that betting on election outcomes could undermine public trust in the electoral process. A letter from several government leaders, including Senators Jeff Merkley, Richard Blumenthal, Chris Van Hollen, Elizabeth Warren, and Sheldon Whitehouse, as well as Representatives Eleanor Holmes Norton, Jamie Raskin, and John Sarbanes, emphasized these worries.
The letter highlighted the risks associated with election betting, stating, “As we approach the 2024 election, voters already face a political system that allows the richest individuals and corporations to funnel dark money into campaigns without disclosure. The threat of violence and extremism is high, and the US remains a target for foreign actors who have sought to meddle in our elections.”
Lawmakers expressed that allowing election betting could further erode trust in the electoral process. They urged for actions to restore voter confidence rather than focusing on monetary gains. “The last thing that voters heading to the polls need are bets waged on the outcome of that election. Voters need action, as proposed by the CFTC in this rule, to restore trust. Elections are not a for-profit enterprise. Without this rule, voters will wonder if their vote mattered, and whether the outcome of the election was influenced by big money bets,” the letter concluded.
Both the CFTC and Kalshi have yet to respond to the Associated Press’ request for comment.