ATLANTIC CITY, N.J. — Betting on the outcomes of U.S. Congressional elections is set to resume temporarily following a ruling from a federal appeals court.
The U.S. Court of Appeals for the District of Columbia Circuit has lifted a previous order that barred bets by a New York startup on which political party will control the House and Senate after the upcoming elections in November.
This decision allows for betting to continue as the court examines the details of the case further. The startup has primarily targeted congressional races, but it remains undetermined if they will expand their offerings to presidential election betting.
The court indicated a potential reconsideration of the ban if the regulatory commission presents new evidence of significant harm to public interest in the following weeks.
While the company is now permitted to resume betting activities, it was not clear at the time if they had reinstated their betting options. As of the last check, there were no active markets listed on their website.
The U.S. Commodity Futures Trading Commission, which has opposed such betting, did not respond for comment.
The startup is in the process of seeking approval for the regulation of political betting, which the commission previously denied, citing concerns over manipulation risks and the potential erosion of trust in the electoral process.
Last month, the federal court ruled favorably for the startup, which managed to handle around $50,000 in bets within eight hours post-ruling before the appeal panel intervened with a freeze.
The recent court ruling concluded that the regulatory commission failed to demonstrate that significant harm would likely arise from the resumption of election betting.
Concerns regarding election integrity have been voiced by various advocacy groups, describing the ruling as detrimental to the democratic process. Experts warn that the introduction of gambling on elections could result in severe consequences, encouraging negative influences on voter behavior amidst ongoing election cycles.
As the election date approaches, the potential for unmanageable complications stemming from betting remains a pressing concern.
The startup offers a diverse range of betting options on various subjects, including other political topics and non-political matters. Their current betting options include predictions about President Joe Biden’s approval ratings, potential TikTok bans, and upcoming presidential debates.
