New Legislation Aims to Prevent Politician Betting on Elections
- Representative Don Davis introduced the No Betting on Your Own Race Act to prohibit federal candidates and their families from trading contracts related to their elections.
- The proposed legislation includes a civil penalty of $10,000 for each violation or three times any financial gain from such activities.
- The bill targets “political event contracts,” indirectly addressing platforms like Kalshi and Polymarket, although these are not explicitly named in the text.
- Laurie Buckhout, a Republican candidate, faced a suspension and penalty from Kalshi for trading related contracts but did not incur civil or criminal charges.
- The House and Senate will not address this bill before the midterm elections as they are out of session until November.
This legislation aims to prevent potential insider trading and market manipulation by politicians during elections, ensuring fairer electoral processes. Currently, event contracts on US elections remain available on prediction markets like Kalshi and Polymarket.
With penalties reaching up to $10,000 per violation, the No Betting on Your Own Race Act seeks to deter lawmakers from profiting off their own electoral outcomes.(Source)
