Kalshi Launches Regulated U.S. Election Betting Markets

With Election Day fast approaching, Kalshi has officially resumed its fully regulated election betting markets in the U.S. after a pivotal legal win. A federal appeals court in Washington lifted a freeze on Kalshi’s political markets, rejecting a last-minute attempt by regulators to block the trades. Kalshi is now offering bets on whether Republicans or Democrats will control Congress and has hinted at expanding its political betting offerings, including the U.S. presidential election.

Kalshi’s return represents a new era in U.S. political betting. Unlike past offshore betting platforms or academic ventures with limited stakes, Kalshi allows U.S.-based participants to wager legally on elections, with bets reaching up to $100 million. This breakthrough comes after years of U.S. traders navigating offshore markets or restrictive betting systems.

CEO Tarek Mansour expressed pride in Kalshi’s ability to provide a “safe, regulated, and trusted” environment for political betting, an area that has long been mired in legal gray zones. This decision is seen as a significant win for the broader political betting industry, which has struggled to establish regulated markets within the U.S. financial system.

The Commodity Futures Trading Commission (CFTC), which has been challenging Kalshi’s efforts, did not immediately respond to the ruling. However, another major player, Interactive Brokers, has announced plans to introduce its own election betting markets, further intensifying competition in this emerging space.

Beyond political markets, Kalshi has made a name for itself by offering a wide array of event contracts, allowing users to bet on various real-world events. These range from economic data releases and SpaceX launches to predictions about Oscar nominations. This expansion into regulated political betting sets the stage for a new chapter in the intersection of finance and politics, bringing what was once a niche, underground activity into the mainstream.