US Lawmaker Proposes Ban on Candidates Betting on Their Own Races

The proposed bill mandates civil penalties of $10,000 or three times the net financial gain, whichever is greater, for any candidate found trading on their own electoral success. These restrictions extend to spouses, dependent children, and authorized campaign committees, while also prohibiting candidates from directing others to execute such trades on their behalf. To ensure enforcement, the Federal Election Commission would be required to maintain and update a public database of federal candidates.

This legislative move follows recent disciplinary actions by the prediction market Kalshi against several congressional candidates, including Laurie Buckhout, who was suspended after purchasing contracts linked to her own race in North Carolina’s 1st District. While the bill provides a safe harbor for platforms that act in good faith to report violations or close prohibited accounts, it faces a tight timeline. Congress is not expected to vote on the measure before the November 3 midterm elections, and the provisions would not apply retroactively to current trades.