- Casino
- By State
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Georgia
- Florida
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Massachusetts
- Maryland
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
- By State
- Slots
- Poker
- Sports
- Esports
Fact-checked by Velimir Velichkov
Legal Battle Between Kalshi and CFTC Intensifies
The two sides in the legal hurdle appeared for a hearing at the US Court of Appeals for the DC Circuit recently

Ahead of the Presidential Elections in the United States in November, the Commodity Futures Trading Commission (CFTC), an agency that regulates US derivative markets and combats manipulation, fraud and other unlawful practices, clashed with Kalshi, a regulated exchange and prediction market offering trading on the outcome of real-world events.
While the legal hurdle between the duo resulted in a win for Kalshi, which was permitted to offer event contracts on the elections, the CFTC didn’t plan to give up. After the DC District Court’s decision that permitted the prediction market to operate, the CFTC filed an appeal.
Kalshi and CFTC Appear at a Hearing
In the latest chapter of the legal battle, each of the sides made oral arguments during an hour-and-a-half-long hearing on Friday. As announced by Covers, the CFTC and Kalshi appeared for arguments at the US Court of Appeals for the DC Circuit.
Yaakov Roth, a partner with the leading law firm, Jones Day, who defended Kalshi’s position, spoke about prediction markets that grant the public “informational value” as well as “legitimate hedging and economic needs.” However, he added: “The commission’s (CFTC) interpretations of the statute are untenable and lack any meaningful limiting principle.”
Roth explained that he understands the policy arguments in support and opposition of election prediction markets. “But the question here is: Did Congress empower the commission (CFTC) to prohibit them,” he added.
The Legal Dispute Between the Duo Continues
It was back in 2023 when the CFTC barred Kalshi from offering event contracts on the congressional elections. This prohibition resulted in a lawsuit filed by the popular prediction market. That process culminated with a decision of Judge Jia Cobb with the DC District Court, who ruled that the CFTC didn’t have the power to order Kalshi to discontinue its offering.
The CFTC’s attempt to stop Kalshi revolved around a “special rule” that would permit the agency to conduct a review into the company over suspected gaming or illegal activities. However, this wasn’t the case, according to Judge Cobb, whose ruling outlined that offering event trading contracts on the congressional elections doesn’t constitute “gaming” or an illegal activity.
Judging by the ongoing legal battle, neither side plans to take a step back. Rob Schwartz, CFTC’s general counsel, explained on Friday: “The reason we’re here today is because a federally regulated exchange has turned itself into an online casino for betting on elections.” Moreover, he added: “The question for the court, though, is not whether that’s right or wrong, but whether the CFTC can even evaluate that activity.”
Kalshi isn’t the only business that is in the sights of the agency. Earlier this month, we reported that future contracts on major football games offered by Crypto.com resulted in a 90-day review of the CFTC.
Again, earlier this year, Kalshi announced the appointment of Donald Trump Jr. as strategic adviser. This appointment reaffirms the growing popularity of event trading contracts on politics, but at the same time signals that a change in the view of such activities can be expected, especially considering the planned swearing-in of President-elect Donald Trump planned for Monday, January 20, 2025.
Related Topics:
Jerome brings a wealth of journalistic experience within the iGaming sector. His interest in the industry began after graduating from college, where he regularly participated in local poker tournaments. This exposure led him to the growing popularity of online poker and casino rooms. Jerome now channels all the knowledge he's accrued to fuel his passion for journalism, providing our team with the latest scoops online.
Must Read
Legal
February 4, 2025
Full House Prevails in Waukegan Casino Lawsuit
Legal
February 5, 2025
Minnesota Man Avoids Prison in Proxy Gaming Case
More Articles
Legal
February 10, 2025
Las Vegas Police Apprehend 3 Suspected for the Power Outage Last Monday
Legal
February 10, 2025
High 5 Games Ordered to Pay $25M to Players in Washington
Industry
February 10, 2025
Hawaii Considers Gambling Legalization to Strengthen Economy
Industry
February 10, 2025
Hollywood Casino-Aurora on Track for Completion in H1 2026
Industry
February 10, 2025
Oakland Athletics File Permit for Future Stadium Development
Legal
February 10, 2025
Steve Wynn Asks Supreme Court to Revisit Key Press Freedom Case
Business
February 10, 2025
Bally’s Wraps Up $4.6B Deal with Standard General
Casino
February 7, 2025
Cedar Rapids Secures Long-Awaited Iowa Casino License
Industry
February 7, 2025
Fight Against Illegal Skill Machines in Michigan Intensifies
Sports
February 7, 2025
Donald Trump Could Be Professional Golf’s New Messiah