Kalshi Targets Former Rep. George Santos with Lifetime Ban and $71,000 Fine Over State of the Union Bets
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Prediction-market platform Kalshi has imposed a lifetime ban and a hefty fine on former Republican congressman George Santos for betting on his own attendance at the State of the Union, raising concerns about overregulation and selective enforcement against conservative figures.
Kalshi announced it has permanently banned former New York Republican congressman George Santos from its platform and slapped him with a $71,356 penalty after determining he placed bets on his own attendance at President Trump's State of the Union address. Santos, who reportedly earned over $17,000 by betting he would not appear at the event, was accused of failing to cooperate with Kalshi’s internal investigation—a move that critics say is part of a broader crackdown on conservative voices in emerging markets.
"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, pushing back against what many see as an excessive and politically motivated punishment.
The Commodity Futures Trading Commission, which regulates these markets, previously ordered Santos to return the $17,000 profit and imposed an additional $17,500 fine as part of a settlement. Despite being expelled from Congress in 2023 and pleading guilty to federal wire fraud and identity theft, Santos had his prison sentence commuted by President Trump in 2022—a decision that outraged the left but reflected the president’s willingness to challenge the establishment.
Kalshi also disclosed disciplinary actions against other political figures, including a three-year suspension and fines for Republican congressional candidate Laurie Buckhout, billionaire Stephen Cloobeck, and former Planet Fitness executive Ben Midgley, raising questions about the fairness and consistency of enforcement.
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. As Kalshi and its rival Polymarket face mounting scrutiny, the debate rages over whether prediction markets should be treated as gambling or financial products, with recent court rulings splitting appellate courts and the Supreme Court expected to weigh in—an important battle over freedom and regulatory overreach.