Bill aims at stopping US lawmaker bets on their own elections ahead of midterms

A North Carolina lawmaker has introduced legislation aimed at blocking politicians from using prediction market platforms to potentially profit on their own elections.

On Monday, Representative Don Davis introduced the No Betting on Your Own Race Act, prohibiting federal candidates, their campaigns, their spouses and children from “buying, selling, acquiring, disposing of, or holding contracts” related to their elections. Davis said that the legislation was designed to prevent market interference, insider trading and lawmakers from “cashing in” on elections, with a proposed $10,000 civil penalty for each violation or three times any potential financial windfall.

Although the text of the bill did not explicitly mention prediction market platforms like Kalshi and Polymarket, it referred to “political event contracts,” signaling that the legislation targeted activities through such companies. Republican House of Representatives candidate Laurie Buckhout received a three-year suspension and a $2,590 penalty from Kalshi in August over trading event contracts related to her race, but did not face civil or criminal charges.

However, Davis’ bill will not be addressed before the 2026 midterm elections as the House and Senate are out of session until November, though the House has been holding some pro forma sessions. Event contracts on US elections continue to be available on both Kalshi and Polymarket, offering better odds on Democrats retaking Congress in 2027.

Related: New York sues Polymarket over alleged illegal gambling business