Proposed legislation targets lawmakers wagering on their own electoral races before upcoming midterms
Under the proposed bill, US legislators attempting to profit financially from elections could face civil fines of $10,000 per infraction or triple the amount of any monetary gains.
Legislation has been put forward by a lawmaker from North Carolina with the goal of preventing elected officials from utilizing prediction market platforms to generate profits based on the outcomes of their own electoral contests.
Representative Don Davis unveiled the No Betting on Your Own Race Act on Monday, which would bar federal political candidates, along with their campaign organizations, spouses and children from engaging in activities involving "buying, selling, acquiring, disposing of, or holding contracts" connected to their electoral races. According to Davis, the purpose of the legislation is to stop market manipulation, prevent insider trading and keep lawmakers from financially profiting from elections, establishing a civil fine of $10,000 for each infraction or three times the amount of any financial gains.
While the legislative text did not specifically name prediction market platforms such as Kalshi and Polymarket, it made reference to "political event contracts," making it clear that the legislation was aimed at transactions conducted through these types of companies. In August, Laurie Buckhout, a Republican candidate for the House of Representatives, was handed a three-year suspension along with a $2,590 fine from Kalshi for trading event contracts connected to her own race, though she was not subject to civil or criminal prosecution.
Nevertheless, the bill introduced by Davis will not receive consideration prior to the 2026 midterm elections due to the fact that the House and Senate are currently in recess until November, although the House has been conducting some pro forma sessions. Political event contracts focused on US elections remain accessible on both Kalshi and Polymarket, with markets currently showing better odds on Democrats regaining control of Congress in 2027.