WASHINGTON — Betting on US elections remains suspended after a federal appeals court on Thursday declined to rule in a case over whether such bets are allowed.
The U.S. Court of Appeals for the DC Circuit has heard an appeal from the U.S. Commodities and Futures Trading Commission, which is seeking to block New York startup Kalshi from offering bets on the outcome of this fall’s congressional elections.
The three-judge panel in Washington heard the commission’s arguments that allowing betting on elections would undermine already shaky confidence in elections.
Kalshi also noted that robust, fully liquid futures markets are inherently capable of rooting out and correcting attempts at manipulation.
The judges did not give a timetable for the decision, but both sides want a decision before this fall’s elections.
Kalshi was briefly allowed to place bets last week on which political party would win control of Congress in November, but the appeals court intervened and halted the bets.
Kalsi said it placed about $50,000 in bets in the form of futures contracts in the eight hours it was given permission to do so last week.