Federal Judge Clears Path for Americans to Bet on Election Outcomes

The judge acknowledged concerns that allowing such trades could threaten the public interest but said regulators had overstepped.

A trader on the floor of the New York Stock Exchange on Oct. 4, 2023. Michael M. Santiago/Getty Images

In a landmark decision, a federal judge has ruled to let Americans use financial market instruments to bet on the outcome of U.S. elections, finding that the regulatory agency that blocked election betting overstepped its authority.

In a case that pitted predictions marketplace KalshiEX LLC against the Commodity Futures Trading Commission (CFTC), District Court Judge Jia Cobb issued a memorandum and opinion on Sept. 12 that clears the path for the use of derivatives contracts to place bets on the outcome of American elections.