Financial startup sues CFTC after rejection of proposed election betting market

Financial startup Kalshi sued the CFTC after the regulator rejected its proposal for election betting markets in the US.

Kalshi wanted to create a market for derivatives tied to Congressional elections, arguing it should be open to the public.

The CFTC denied the proposal, citing political betting being illegal in some states.

Kalshi called the CFTC's rejection "arbitrary, capricious and otherwise contrary to the law" in its complaint.

Some colleges run small election betting markets for research, but for big money Americans look overseas to places like Betfair.