Rep. Don Davis Proposes Ban on Federal Candidates Trading Prediction Market Contracts
U.S. Rep. Don Davis (D-N.C.) introduced legislation to prohibit federal candidates from trading prediction market contracts related to their own elections, following a controversy involving his Republican opponent in North Carolina's 1st Congressional District. Laurie Buckhout was penalized by Kalshi for such trades and suspended for three years. The proposed 'No Betting on Your Own Race Act' would impose fines of at least $10,000 or triple the net gain from violations—whichever is greater—to deter candidates from profiting off their own electoral outcomes. Davis compared this to athletes not betting on their games and called for consistent rules across all federal campaigns. The bill was introduced during a pro forma session of Congress with little chance of passing before the midterms, as legislative sessions are set to resume after elections. The Senate passed an earlier resolution banning senators from such trades in April, but it did not apply to non-incumbent candidates.
Topics: elections insider trading prediction markets U.S. Congress