Americans will be able to bet on the outcome of this year’s presidential election after a federal judge at Washington, D.C. ruled that a regulatory agency overstepped its authority when it barred a betting firm from offering contracts. 

The Commodity Futures Trading Commission ruled in 2023 that the betting and prediction firm Kalshi was not legally allowed to offer what are known as event contracts, which allows individuals to place money on the likelihood of specific outcomes. Kalshi sued, saying the CFTC went beyond its authority in barring their firm from offering such contracts. 

“Election markets are now legal in the United States for the first time in 100 years. Americans will finally be able to trade the election on a U.S.-regulated market,” the firm’s chief executive and co-founder, Tarek Mansour, said on X. 

Now, users are expected to be able to enter into what are known as event contracts with Kalshi. The firm says that they are the only trading market in America where individuals can bet on whether or not a certain event will happen across politics, finance, sports, and entertainment, among other issues. 

Kalshi has been offering users the opportunity to bet on issues like a Federal Reserve rate cut or Bill Belichick’s future as an NFL coach. Those who choose to bet can click on a question on Kalshi’s homepage, such as “Will Bill Belichick get a head coaching job before May?,” and they choose to buy either “yes” or “no.” Based on how many individuals had previously purchased either yes or no as part of the event contract, there is a certain payout. 

Kalshi differs from other betting firms like Polymarket in that it is able to trade in American dollars rather than cryptocurrency and other blockchain currencies. It is regulated by the CFTC and other federal agencies because it is recognized as a financial exchange. 

Judge Jia Cobb, the federal judge who made the ruling against the CFTC, did not explain her decision when it was handed down on Friday. She said an explanation was forthcoming. 

Shortly after Judge Cobb’s decision, the CFTC asked for a two-week stay of her order because the federal agency was in “the unenviable position of finding out that it has lost but without any explanation or reasoning.”

“At a time when distrust in elections is at an all-time high, even a short listing of Plaintiff’s contracts, and/or similar election contracts on other DCMs, could harm public perception of election integrity and undermine confidence in elections,” CFTC lawyers wrote to Judge Cobb.

The reaction from Kalshi itself was nothing less than ecstatic. “ELECTION MARKETS ARE COMING TO KALSHI!” the firm says on its homepage. “We did it! Election markets are now legal in the US for the first time in 100 years. Stay tuned for more info, share with your friends, and God bless America!”

On Sunday, Kalshi filed its own brief with Judge Cobb, asking her to let her order stand. “The Commission lost, fair and square, on the law,” Kalshi’s lawyers wrote. “It should not be allowed to snatch a procedural victory from the jaws of defeat by running out the clock.”