History of Kalshi in Timeline
Kalshi Inc., a financial exchange and prediction market located in New York City, allows traders to bet on future events. Launched in 2021, it offers contracts on events like economic indicators, weather, awards, and political outcomes. Users trade on yes-or-no questions, with contracts paying $1 for correct predictions. The platform caters to both retail and institutional investors. In late 2024, Kalshi gained regulatory approval to relist political event contracts, enabling users to wager on election outcomes such as congressional control and presidential races.
2018: Kalshi Founded
Kalshi was founded in 2018 by Tarek Mansour and Luana Lopes Lara, inspired by challenges investors faced hedging against uncertainties like the Brexit referendum.
November 3, 2020: Kalshi Obtains CFTC License
On November 3, 2020, after 18 months of effort, Kalshi secured a federal license from the CFTC, registering as a designated contract market.
July 2021: Kalshi Launches Trading Platform
In July 2021, Kalshi officially launched its trading platform, offering event contracts on various future events.
July 2021: Kalshi Trading Platform Launch
Kalshi's trading platform launched in July 2021, enabling users to trade on various future events.
August 2022: CFTC Reviews Kalshi's Political Event Contracts
In August 2022, the CFTC reviewed Kalshi's political event contracts, with Commissioner Pham dissenting, arguing against the need for a public interest test.
October 2022: CFTC Delays Decision on Kalshi's Application
In October 2022, the CFTC delayed a decision on Kalshi's application for higher-stakes futures contracts related to the midterm elections, following staff recommendations against the proposal.
April 2023: Kalshi Trading Details and Limits as of April 2023
As of April 2023, Kalshi's platform allowed bet limits of $25,000, with certain contracts allowing up to $7 million. Trading is based on yes-or-no questions, and the contract price reflects the market's estimated probability.
June 2023: Kalshi Proposes New Plan for Wall Street Wagers on Congressional Control
In June 2023, Kalshi proposed a plan allowing large firms to wager up to $100 million on congressional control. The CFTC requested further public comment, prompting dissent from Republican commissioners.
August 2023: Senators Urge CFTC to Reject Kalshi's Election Betting Contracts
In August 2023, six senators sent a letter to the Commodity Futures Trading Commission (CFTC) urging them to reject Kalshi's proposal to offer contracts on election outcomes. The senators expressed concerns about the potential impact on election integrity and public trust in election results.
September 2023: CFTC Rejects Kalshi's Proposal for Congressional Control Contracts
In September 2023, the CFTC rejected Kalshi's proposal for congressional control contracts, citing public interest concerns. Kalshi subsequently sued the CFTC in November.
2023: Legal Dispute Between Kalshi and CFTC
In 2023, a legal dispute arose between Kalshi and the CFTC regarding political event contracts. Kalshi argued they serve public interest, while the CFTC raised concerns about gambling and oversight.
September 12, 2024: Court Ruling Favors Kalshi, CFTC Appeals
On September 12, 2024, a judge ruled in favor of Kalshi, stating the CFTC overstepped in blocking congressional control contracts. The CFTC appealed, requesting an emergency stay, arguing the contracts were illegal and could undermine election integrity.
October 2, 2024: Court Allows Kalshi to Revive Election Markets
On October 2, 2024, a federal appeals court allowed Kalshi to reinstate U.S. election markets, overruling regulators' freeze attempt. This marked a significant step for political betting, with Kalshi offering trades on congressional control and potentially expanding to presidential elections.
October 2024: Kalshi Reintroduces Election Markets
In October 2024, Kalshi received approval to reintroduce election markets, allowing users to trade on political outcomes, such as congressional control and presidential elections.
October 2024: Kalshi Allowed to List Election Contracts Despite Criticism
In October 2024, the CFTC ruled in favor of Kalshi, allowing the platform to list contracts on election outcomes. This decision was met with criticism from consumer advocacy groups like Better Markets, who argued that it could further erode public trust in elections and create new opportunities for day trading.
2025: Kalshi Relaunches Congressional Control Contracts
In 2025, Kalshi relaunched its congressional control contracts, allowing wagers on which party would control the House and Senate. This followed a court ruling in their favor, although the CFTC's appeal had briefly halted the offerings.