Prediction market platform Kalshi announced disciplinary actions against several individuals for violating its policies, with former congressman George Santos receiving a lifetime ban and $71,356 fine. The company determined that Santos had publicly stated he would attend the president’s State of the Union address while simultaneously placing bets on the platform that he would not attend the event, generating more than $17,000 in profits from the misleading statements.
Federal authorities had initiated an investigation into Santos’s trading activities earlier this year. The Commodity Futures Trading Commission, which regulates prediction markets, previously reached a settlement requiring Santos to return his profits and pay an additional $17,500 in fines. Santos responded to Kalshi’s ban through social media, questioning the platform’s longevity.
Beyond Santos, Kalshi announced additional enforcement actions against other political figures. Laurie Buckhout, a Republican congressional candidate in North Carolina, received a three-year suspension and fine for wagering on her own campaign. Billionaire Stephen Cloobeck was similarly suspended for three years after betting $10,000 on an unsuccessful California gubernatorial bid. Ben Midgley, a former Planet Fitness president who ran for Maine’s Republican gubernatorial nomination, also received a three-year suspension and financial penalty for betting on his own candidacy.
These enforcement actions reflect broader regulatory scrutiny of prediction market activities. Recent cases have included federal authorities charging President Trump’s former teleprompter operator Gabriel Perez for using advance knowledge of speeches to profit on prediction markets, resulting in forfeiture of over $100,000 and additional fines. The regulatory landscape remains contentious, with courts split on whether prediction markets should be classified as gambling or financial products. Multiple states have challenged the platforms’ legality, while the Trump administration has provided minimal regulatory guardrails, leaving platforms largely responsible for self-policing.
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