Kalshi bans former Rep. George Santos for life and fines him $71,000 over State of the Union bets
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Prediction-market platform Kalshi imposed a lifetime ban and a $71,356 fine on ex-Congressman George Santos after finding he placed wagers on his own attendance at the State of the Union and failed to cooperate with its investigation.
Kalshi announced it has permanently barred former New York Republican congressman George Santos from its platform and levied a $71,356 penalty after determining he misled the public about his attendance at President Trump's State of the Union address to profit from a prediction market. The company said Santos placed bets that he would not appear at the event, earning more than $17,000, and did not cooperate with its internal investigation.
"Hey @Kalshi thanks for the lifetime ban from your gambling platform. Let's see how much longer you guys are around for," Santos wrote on X in response to the ban.
The Commodity Futures Trading Commission, which regulates such markets, previously ordered Santos to return the $17,000 profit and imposed an additional $17,500 fine as part of a settlement. Santos, who was expelled from Congress in 2023 and later pleaded guilty to federal wire fraud and identity theft, had his prison sentence commuted by President Trump in 2022.
Kalshi also disclosed disciplinary actions against other political figures who wagered on their own campaigns, including a three-year suspension and fines for Republican congressional candidate Laurie Buckhout, billionaire Stephen Cloobeck, and former Planet Fitness executive Ben Midgley.
The crackdown follows a settlement with former White House teleprompter operator Gabriel Perez, who was required to surrender over $100,000 in profits and pay a $65,000 fine for betting on the president's speech content. Kalshi and its rival Polymarket have faced increasing scrutiny as regulators debate whether prediction markets should be treated as gambling or financial products, with recent court rulings creating a split among appellate courts and the Supreme Court expected to resolve the issue.