Kalshi, a prediction market company, argues that only Congress has the power to ban election betting, challenging the U.S. Commodity Futures Trading Commission (CFTC) in a recent court filing. The dispute arose after the CFTC attempted to block Kalshi from offering contracts that would allow betting on which political party would control Congress following the November elections, claiming that such activities constituted 'gaming' and were unlawful under state law. Kalshi contends this view is an arbitrary and unfounded interpretation of the law, labeling the CFTC’s definitions of gaming as a form of gerrymandering. Kalshi has already succeeded in a District Court, where a judge ruled against the CFTC's interpretation, stating it was overly broad. The CFTC is now appealing that decision, seeking to redefine gaming to include political contests, which would effectively outlaw election betting. In its filing, Kalshi argues that the CFTC's decision exceeded its authority and is a matter for Congress to resolve.

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