U.S. legislation bans candidates from betting on elections through prediction markets

On October 7, according to Cointelegraph, U.S. Representative Don Davis of North Carolina introduced the "No Betting on Your Own Race Act," aiming to prevent politicians from leveraging prediction market platforms to profit from their own campaigns.

The bill prohibits federal candidates and their close campaign associates from "buying, selling, obtaining, or holding" "political event contracts" tied to their elections. For violations, the bill proposes civil penalties of $10,000 per offense or fines equal to three times the potential illicit gains. Although the bill's text does not directly name specific companies, it primarily targets political contract products offered by platforms like Kalshi and Polymarket. Previously, Republican House candidate Laurie Buckhout was suspended for three months and fined $2,590 by the platform for conducting similar trades on Kalshi.

Since Congress is currently in recess until November, the bill is expected to miss the deadline for passage before the 2026 midterm elections. At present, platforms including Kalshi and Polymarket continue to provide U.S. election forecasting services, with data indicating that Democrats hold the odds advantage in the contest for congressional seats.