Federal bill would bar candidates from trading on their own election markets

Rep. Don Davis has introduced a House bill that would ban federal candidates from trading on prediction market contracts tied to their own elections.

The proposal, called the No Betting on Your Own Race Act, follows a dispute involving Davis’ Republican opponent, Laurie Buckhout, and trades on Kalshi related to her candidacy. No West Virginia-specific change was reported in the source.

Bill would create a financial penalty for candidate trades

According to CNBC, Davis’ bill would prohibit candidates for federal office from trading on event contracts connected to their own races.

The proposed penalty would be $10,000 or three times the net financial gain from the trade, whichever is larger.

Davis compared the issue to sports-betting integrity, saying candidates should not be allowed to trade on their own elections. The report also noted that prediction market platforms have already been enforcing similar restrictions on their own because of insider-trading concerns.

Kalshi controversy helped trigger the proposal

The legislation comes after Buckhout settled with Kalshi in August after the company found she traded on contracts tied to her candidacy in North Carolina’s 1st Congressional District.

Buckhout paid a penalty of just under $2,600 and was suspended from Kalshi for three years. After the settlement, she said, “I bet on myself. Literally,” and called it “a dumb mistake.” Davis described the trades as “a disqualifying breach of public trust.”

What happens next

The bill is unlikely to affect the current election cycle. The House and Senate are not scheduled to meet again until after the midterm elections, according to the report.

Congress has already taken some steps on the issue. In April, the Senate approved a resolution to ban senators and staff from trading on prediction markets, though that measure did not extend to non-incumbent Senate candidates. The House has not passed a similar ban, but related resolutions have been proposed.

For now, this is a federal ethics and prediction-markets proposal to watch rather than a reported change for West Virginia players or campaigns.

More from playwv.com – Play’n GO to Launch on Ember Casino in West Virginia Under New U.S. Partnership – Federal judge denies Kalshi injunction request in Iowa case over event contracts – CFTC settlement bars former White House worker from prediction markets after Kalshi profits

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Source: As reported by cnbc.com.