Prediction marketplace Kalshi hands down permanent trading suspension to ex-GOP lawmaker Santos
Former congressman George Santos received a permanent trading ban from the prediction marketplace, while congressional hopeful Laurie Buckhout faces a three-year suspension following probes into trades made with privileged knowledge.
The prediction marketplace platform Kalshi disclosed disciplinary measures targeting former Republican congressman George Santos and North Carolina House candidate Laurie Buckhout for leveraging privileged information while executing trades on event contracts, marking one of the platform's first permanent bans since its 2021 inception.
Through individual settlement notices for disciplinary proceedings published Friday, Kalshi's compliance team revealed it had issued Santos a lifetime trading prohibition on the prediction platform combined with a financial penalty of $71,356. Meanwhile, Buckhout was handed a suspension spanning three years alongside a $2,590 fine.
Kalshi imposed both penalties following inquiries into Santos and Buckhout executing trades involving event contracts where their personal actions could influence outcomes. The platform stated that Buckhout, a contender in North Carolina's 1st congressional district race, "announced her candidacy for public office and was added as a market option for a contract on a North Carolina Congressional election," whereas Santos "engaged in trading activity in certain markets related to his attendance at the State of the Union address" in February 2026.
If a Trader is a decision maker, either directly or indirectly, or has any influence, directly or indirectly, no matter the scale and importance of the influence, on the outcome of the Underlying event of any Contract, that Trader is prohibited from attempting to enter into any trade, either directly or indirectly, on the market in such Contracts.
Kalshi's rules
The company's enforcement actions mark a substantial intensification of oversight during a period when prediction marketplace platforms face heightened examination from state and federal legislators regarding accusations that numerous event contracts remain vulnerable to manipulation. Federal regulatory authorities imposed a $172,000 fine on Gabriel Perez, President Donald Trump's teleprompter operator, following his trades on Kalshi involving event contracts connected to Trump's public addresses.
Kalshi's compliance team noted that Buckhout "cooperated with the inquiry" and accepted both the three-year suspension from trading and the accompanying financial penalty, yet the platform offered no comparable statement regarding Santos' case, indicating the former congressman may not have provided cooperation during the investigation.
Buckhout continues her campaign as the Republican nominee for North Carolina's 1st congressional district in the 2026 midterm elections, whereas Santos, who previously served as representative for New York's 3rd congressional district, faced expulsion from Congress in December 2023 following fraud charges.
Responding to the settlement announcement, Santos posted on X Monday that Kalshi was an "unserious company." Buckhout has reportedly characterized her decision to place bets on her own congressional race as a "dumb mistake."
By Tuesday, Kalshi continued offering event contracts relating to Buckhout's North Carolina race outcome, with Democratic incumbent Don Davis holding a 63% probability compared to the Republican challenger's 41%.
CFTC taps emergency authority in fed-state prediction markets legal battle
Prediction marketplace platforms including Kalshi and Polymarket are confronting multiple legal challenges brought by gaming regulators from various US states over claims the platforms enable unlawful wagering on sporting competitions. Simultaneously, Michael Selig, the sole commissioner and chair of the US Commodity Futures Trading Commission (CFTC), maintains that the federal agency possesses "exclusive jurisdiction" over prediction marketplaces and has pledged to pursue legal remedies against any state regulator contesting this authority.
During the previous month, the CFTC employed emergency authority in an uncommon action to oppose New York state's efforts to prevent Kalshi from providing contracts connected to sports competitions, political elections and additional events.