SKN | US Lawmaker Introduces Bill to Ban Candidates From Betting on Their Own Elections

Key Points

• Rep. Don Davis introduced the No Betting on Your Own Race Act, which would prohibit federal candidates, their spouses, dependent children and authorized campaign committees from trading contracts tied to their own elections.
• Violations would carry a civil penalty of at least $10,000 or three times the net financial gain, whichever is greater.
• The legislation is unlikely to affect the 2026 midterms because Congress is not scheduled to reconvene until after the election.

A North Carolina lawmaker has introduced legislation seeking to establish a federal prohibition on candidates trading prediction-market contracts connected to their own elections, adding to growing scrutiny of election-related betting platforms.

Rep. Don Davis introduced the No Betting on Your Own Race Act on Oct. 5. The proposal would prohibit federal candidates, their spouses, dependent children and authorized campaign committees from buying, selling, acquiring, disposing of or holding contracts related to the candidate’s election.

Bill Targets Election-Linked Contracts

Although the legislation does not specifically name prediction-market platforms such as Kalshi or Polymarket, its reference to political event contracts would cover the type of election-linked instruments offered by such platforms.

Under the proposed legislation, violations would carry a civil penalty of $10,000 or three times the net financial gain from the transaction, whichever amount is greater. The proposal would also require candidates to be notified of the restriction during the federal filing process.

The measure follows a series of cases involving political figures trading contracts connected to events in which they had a direct interest. The issue has raised questions about conflicts of interest, access to nonpublic information and the ability of prediction markets to prevent participants from influencing the outcomes on which they trade.

North Carolina Race Brings Issue Into Focus

Davis’ proposal comes shortly after his Republican opponent, Laurie Buckhout, was sanctioned by Kalshi for trading contracts tied to her own congressional race.

Kalshi suspended Buckhout for three years and imposed a $2,589.96 penalty after determining that she had traded contracts connected to her candidacy. Buckhout said she had bet on herself and described the transaction as a mistake.

The incident illustrates the distinction between platform-level restrictions and federal legislation. Kalshi already prohibits individuals who can directly or indirectly influence an event from trading contracts tied to that event, but Davis’ proposal would establish a statutory prohibition applying specifically to federal candidates and certain members of their families and campaigns.

Legislation Faces Timing Challenge

The bill was introduced while the House was holding a pro forma session, and Congress is not scheduled to return for regular legislative business until after the 2026 midterm elections. That timing makes it unlikely that the proposal will become law before the current election cycle ends.

Meanwhile, election-related contracts remain available on prediction-market platforms, keeping questions about candidate participation and potential conflicts of interest relevant as the midterms approach.

Outlook

The No Betting on Your Own Race Act adds a proposed federal framework to an issue that has so far been addressed largely through prediction-market rules and individual enforcement actions. While the legislation is unlikely to affect the 2026 elections, its introduction could contribute to a broader debate over how election contracts should be regulated, particularly as prediction markets expand their presence in US political and financial markets.