Following a legal dispute involving the competing service PredictIt, federal authorities in the United States said that the plans were not in the “public interest.”
The Commodity Futures Trading Commission (CFTC) did not approve of the prediction market Kalshi’s proposal to allow users to wager on which party would dominate the houses of Congress. This decision was made by the regulators at the CFTC.
Following a proposal by KalshiEx LLC in June 2023, the regulator deemed the contracts “contrary to the public interest” because they would include illegal gambling and behavior.
Users would have been able to place bets on yes or no questions on which party, the Republicans or the Democrats, would have control of the House and Senate in a particular term, and the contracts would have been paid in cash.
Despite an order from the CFTC to shut down, an appeals court decided that another prediction market called PredictIt should be allowed to keep functioning until a final court judgment is issued.
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