Place your bets! Court decision allows gambling on congressional races

Ray Bogan: There’s a lot of focus on horse race politics this time of year. Depending on an upcoming court decision, you may be allowed to place your bets. 

A federal judge recently struck down a Commodity Futures Trading Commission decision that prohibited the company Kalshi from taking bets on congressional elections. The market is now up and running. 

We asked members of Congress what they think of Americans being allowed to place bets on their races. Some said it shouldn’t be allowed, others said they’re not gamblers. 

Rep. Jamie Raskin, D-MD: “We try to have a wall of separation between campaign elections and commerce. And gambling is a form of commerce. You certainly don’t want people betting on an election and then trying to fix an election in order to win the election. So I support the laws against gambling on elections.” 

Ray: “So pretty much, to summarize what you just said, there would be an issue of potential corruption, is what you’re concerned about.” 

Rep. Jamie Raskin, D-MD: “Yeah, of course, you can imagine a situation where you get organized criminals betting on an election and then working to pay off voters, right?”

Rep. Tim Burchett, R-TN: “I’ve never gambled. I don’t, I take that back. I bet on the I bet on the New York Jets in college, and I won $5 and I bought a Mr. Daddy’s large pizza.” 

The case in federal court involves the company Kalshi which wanted to set up a political prediction market platform. House Judiciary Chairman Jim Jordan says the Commodity Futures Trading Commission went beyond its statutory authority when it prohibited Kalshi from doing that. 

Jordan wrote: “The CFTC’s actions also indicate the agency may be engaging in regulation by enforcement, a regulatory practice that creates uncertainty and undermines due process and fundamental fairness.” 

The CFTC said allowing Kashi to move forward with its plan would involve “gaming and activity that is unlawful under State law” and “contrary to the public interest.”

But Jordan says Congress never authorized the CFTC to prohibit what are called “event contracts” in the way Kalshi wanted to operate.

It’s important to note this doesn’t involve standard bets. Instead it’s a kind of mix between a sports book and the stock market where you can buy an event contract that says a candidate will win or lose. 

Predictit.org operates an experimental prediction market platform for the presidential election. Currently a contract for a Harris victory costs 57 cents, while a contract for a Trump victory is at 48 cents, indicating Harris currently is favored to win.

Betting on elections is not authorized anywhere in the United States and some states have bans in place. For more unbiased reporting, download the straight arrow news app and turn on notifications.