In a surprising turn of events, legal betting on the outcome of U.S. Congressional elections has been temporarily suspended by a federal appeals court. The Court of Appeals for the District of Columbia Circuit issued an order on Thursday night, putting the matter on hold until a ruling can be made. The exact timeline for the court's decision remains unclear at this time.

This decision by the court came just hours after a federal judge, Jia Cobb of the U.S. District Court, had given approval for New York startup company Kalshi to offer bets on the November elections. The bets allowed individuals to wager on which party would win control of the House and Senate. Following Judge Cobb's ruling, Kalshi's markets went live and the company accepted an undisclosed amount of bets, referred to as "contracts."

However, the order issued by the Court of Appeals on Thursday evening has temporarily suspended any further bets on election outcomes, leaving the fate of the existing bets uncertain. It came in response to an appeal by the Commodity Futures Trading Commission, which expressed concerns about the potential for financial manipulation and the serious harm it could pose to the integrity of the elections.

During the brief period that the betting markets were live, prices on Kalshi's predictive contracts fluctuated. At one point, a bet on the Republicans to win control of the Senate was priced at 76 cents, with a potential payout of $129 for a $100 bet. In contrast, a bet on the Democrats to win control of the House was priced at 63 cents, offering a potential payout of $154 for a $100 bet.

Interestingly, the elections category, which had been prominently displayed on Kalshi's website on Thursday, mysteriously disappeared on Friday afternoon. The removal of the category suggests that the company is complying with the court's order to halt any further bets on the Congressional elections.

As the court reviews the issue and deliberates on the future of legal betting on U.S. Congressional elections, bettors and observers alike eagerly await their decision. The outcome of this ruling will have significant implications for the gambling industry and the involvement of individuals in predicting political outcomes.