The prediction market platform Kalshi has issued another penalty for self-trading on election-related contracts. According to a settlement notice released on Monday, Laurie Buckhout, a Republican candidate for the U.S. House of Representatives in North Carolina, was suspended from using the platform for three years and fined $2,589.96 for trading contracts related to her own electoral district.
Betting on my own election has been deemed a violation.
Buckhout launched her campaign in December 2025 for North Carolina’s 1st Congressional District. The notice stated that she had purchased contracts worth less than $1,000 tied to the election outcome against Democratic incumbent Don Davis. Kalshi determined that, as a candidate, she was a party with the ability to directly influence the outcome and therefore prohibited from engaging in such trades.
The fine exceeds the bet amount.
The settlement took effect last Friday. Kalshi stated that Buckhout cooperated during the investigation, resulting in a three-year suspension and a fine of $2,589.96. Based on the disclosed amount, the fine exceeds twice his wagered amount.
Buckhout admitted to the media that she placed the order and called it a "stupid mistake." She said she has taken steps to correct it after becoming aware of the issue. Kalshi has not made any further public comments on the matter.
Several people have been penalized for self-staking this year.
Buckhout is at least the fourth candidate penalized by Kalshi this year for trading contracts on their own election races. Previously, Minnesota Senator Matt Klein, former Texas congressional candidate Ezekiel Enriquez, and Virginia Senate candidate Mark Moran were also penalized by the platform for similar actions.
- Matt Klein was fined $539.85
- Ezekiel Enriquez was fined $784.20
- Mark Moran was fined $6,229.30 for failing to settle.
This week, Kalshi also imposed a lifetime ban and a $71,356 fine on former U.S. Representative George Santos in another notice. The platform stated that he traded contracts related to whether he would attend the State of the Union address and failed to cooperate with the investigation.
The platform has tightened transaction reviews for sensitive events.
Kalshi is regulated by the U.S. Commodity Futures Trading Commission (CFTC) and, alongside competitor Polymarket, has driven rapid growth in prediction market trading volume over the past year. As contracts related to politics, policy, and突发事件 become more active, insider information and conflicts of interest are coming under closer scrutiny.
Last week, the CFTC fined a former White House teleprompter operator $172,000 for trading based on non-public information prior to a presidential speech. Separately, a U.S. soldier has been charged for allegedly trading contracts related to the situation in Venezuela on Polymarket. Kalshi has since implemented new risk management measures.
Additional information: Buckhout won the Republican primary in March this year and will face Don Davis again. She lost the 2024 election by less than two percentage points. Due to redistricting by the North Carolina legislature last year, this seat is currently rated as leaning Republican by the Cook Political Report.