US Congressman Proposes Ban on Candidates Trading Their Own Election Contracts on Prediction Markets

PANews, October 6 — According to CNBC, US Democratic Congressman Don Davis has introduced the "No Betting on Your Own Race Act," which would prohibit candidates for federal office from trading contracts related to their own elections on prediction markets.

The bill was introduced after Republican rival Laurie Buckhout was penalized for trading contracts involving her own campaign on Kalshi. Kalshi previously discovered Buckhout trading the relevant contracts, after which she paid a fine of nearly $2,600 and was suspended from trading on the platform for three years. Buckhout responded that she "bet on herself to win," calling it a mistake and saying she handled it promptly after learning of the issue.

Davis said that athletes cannot bet on their own games, and candidates running for federal office should be subject to the same restrictions. Under the proposal, violators would face a fine of $10,000, or three times the net proceeds of the trade, whichever is higher.

At present, the bill is unlikely to be enacted during this midterm election cycle, because the US Congress will not resume formal sessions until after the election. Previously, the US Senate passed a resolution prohibiting senators and staff from trading prediction market contracts, but it did not cover candidates who are not incumbent senators.