Kalshi won big when a judge overruled the CFTC, but the agency wanted a 14-day ban

Kalshi, a platform that offers futures contracts on real-world events, has scored a legal victory in its ongoing battle with the US Commodity Futures Trading Commission (CFTC), which blocked its plan to offer options betting contracts. This decision opens the door for Americans to bet on the outcome of the upcoming congressional elections, despite what the CFTC calls illegal gambling.

Kalshi won at the CFTC

In November last year, Kalshi sued the US CFTC, which barred Kalshi from bidding on which political party would control which house of Congress after the November 2024 US election. Meanwhile, the regulator considered these contracts as illegal gambling and against the public interest.

On September 6, 2024, US District Judge Gia M. Cobb sided with Kalshi, giving the company a legal victory. However, the judge has yet to provide detailed reasoning behind the decision, which is expected in a follow-up opinion. The timing of this comment has not yet been announced.

Following the court's decision, Kalshi posted on the website, “We did it! American options markets are coming to Kalshi. This decision paves the way for the forum to offer option-based contracts, which are prohibited by the CFTC.

The CFTC requires a 14-day delay in the outcome

Despite the legal victory for Kalshi, the CFTC is not yet ready to concede. The regulator asked the court for a 14-day adjournment after the judge's opinion was published.

The CFTC argues that it needs time to consider the court's reasoning to pursue an appeal or proceed. The commission wants this time to file a broader motion to stay the ruling pending any appeal.

What's next for Kalshi?

If the court accepts the CFTC's request, Calci's options markets will remain closed until the end of September at the earliest. This delay comes as Kalshi has already stepped aside from this year's election betting scene, having been taken over by Polymarket, a crypto-based competitor.

Kalshi's victory is a defining moment in the fight for election betting markets in America.