The Commodity Futures Trading Commission (CFTC) has rejected plans by prediction market Kalshi to allow customers to wager on which party will control each chamber of Congress.
Following a submission from KalshiEx LLC in June 2023, the regulatory body declared the contracts to be “contrary to the public interest” and would include illegal gambling and activities.
Users could have placed bets on yes or no questions on whether the Republicans or Democrats will control the House and Senate in a particular term. The contracts would have been settled in cash.
In spite of a CFTC order to close, PredictIt was granted permission by an appeals court to carry on operating until a final court decision last year.