Senator Merkley blasts court ruling lifting pause on election betting markets
WASHINGTON (KTVZ) -- Sen. Jeff Merkley issued the following statement Wednesday after a federal appeals court lifted a temporary freeze on election betting markets, a ruling that he said will immediately allow legal gambling on U.S. elections while the final verdict in the lawsuit is decided.
The suit is brought by Kalshi Inc. and disputes the Commodity Futures Trading Commission’s decision to prevent the listing of betting contracts on U.S. elections, such as control of Congress.
“When we reduce our democracy to a horse race for the ultra-rich and huge corporations to bet on, we demolish the integrity of our democratic process and put corporate profits over people. This ruling comes almost 30 days before one of the most consequential elections in our nation’s history and opens the door to this terrifying practice.
“Gambling on U.S. elections is a bad bet for our democracy. Effective immediately, huge Wall Street firms can open trading to the wealthy so they can bet millions on which party controls the House or Senate. And those folks can then spend big in dark money to attack candidates to protect their bets.
“Allowing big wagers with the ability to put the thumb on the scale is like allowing bets on ballgames when you also control the umpire. It is corruption, plain and simple. And it is corruption aimed at the heart of our democracy.
“I won’t stop leading the charge for Congressional oversight to protect the voice of the voters and the integrity of our elections.”
Today’s ruling from the U.S. Court of Appeals for the District of Columbia Circuit lifts the stay to allow legal betting on our elections while the court continues its final review of the case. Until that final decision, the integrity of our elections hangs in the balance, and gambling on the November elections will take place, harming the public and our democratic process.
Merkley has introduced the Ban Gambling on Elections Act—legislation to prevent Wall Street from setting up massive political betting markets that could influence and interfere with American elections while further eroding public trust in democracy. He also took to the floor of the U.S. Senate to warn about efforts by Wall Street firms to exploit American democracy for profit.
Merkley previously urged the CFTC to reject this then-pending proposal from Kalshi to allow for legal gambling on U.S. elections and their outcomes. He also led his colleagues in urging CFTC Chairman Rostin Behnam to finalize and implement a proposed rule to ban election betting. Last year, Merkley penned an op-ed to elaborate on how legalizing election betting would undermine American elections.
