While two leading prediction markets are fighting regulatory restrictions in court, wagers on politics and economics are still being made. The concept of political betting, however, remains taboo in the US. This article delves into the ongoing battle for political betting and the challenges it faces.
The proposal for a marketplace that would enable political betting has been rejected by regulators. The Commodity Futures Trading Commission (CFTC) issued an order on Friday blocking the Kalshi exchange from issuing event contracts based on who will control the U.S. Senate and House after the upcoming elections.
The regulators argue that the proposal would have transformed the agency into an "election cop." They express concerns about the potential manipulation of outcomes and the integrity of the political process. The rejection highlights the resistance faced by those advocating for the legalization of political betting.