Legalized Political Betting: A New Frontier in US Election Prediction

A judge's ruling has allowed New York-based startup Kalshi to legally offer bets on the November congressional elections, marking a significant move in US political betting. The ruling is under appeal by the Commodity Futures Trading Commission, expressing concerns about the potential for market manipulation and public trust issues.

A landmark ruling has paved the way for legalized political betting in the US, as New York startup Kalshi began offering predictive contracts on the November congressional elections. The judge's decision, made Thursday, has temporarily removed barriers for the company.

Kalshi's predictive contracts allow people to bet on which political party will control Congress. The company's offerings were swiftly followed by significant trading activity, though the Commodity Futures Trading Commission has vowed to appeal the ruling, citing risks of market manipulation and threats to public trust in elections.

Tension remains as industry observers watch whether this ruling will inspire other firms, including sports books and online casinos, to pursue similar ventures. The legal battle is far from over, with the commission seeking an expedited appeal to counter the temporary legalization.

(With inputs from agencies.)