North Carolina Republican Laurie Buckhout, who is running to flip a Democratic-held congressional district, was dealt a fine and suspension by Kalshi after purchasing contracts to trade on her own race. Prediction markets have skyrocketed in popularity over the past few years. These markets allow individuals to purchase contracts related to current events, including elections.
Traders can purchase contracts based on who they believe will win any given election. The rise of these markets, such as Kalshi and Polymarket, has fueled concerns around government ethics, as politicians have been caught engaging in insider trading in the past. Kalshi published a notice of settlement of disciplinary action on Monday stating that Buckhout, an Army veteran running for Congress in North Carolina’s 1st District, violated Rule 5.17(z).
That rule prohibits anyone who is a “decision maker” or “has any influence” on the outcome of an underlying event from trading on that event. She purchased less than $1,000 worth of contracts related to her own candidacy, according to the settlement. She must now pay a $2,589.96 fine and has been suspended from Kalshi for three years.
It was a dumb mistake, and as soon as I learned there was an issue, I worked to make it right. Safe to say my career as a Kalshi trader was short-lived,” she wrote. Democratic Congressional Campaign Committee spokesperson Madison Andrus criticized Buckhout in a statement on Monday.
If Buckhout can’t be trusted to follow the most basic prediction market rules, there is no chance she can be trusted as an ethical representative for North Carolina families,” Andrus wrote. Buckhout is running in a competitive district in northeastern North Carolina currently held by Democratic Representative Don Davis. The district was redrawn ahead of the midterms to give Republicans a stronger advantage in the district.
Under the new lines, it backed President Donald Trump by nearly 12 points. If Davis holds on, the district could become one of the more conservative to be held by a Democrat after the midterms. Democrats believe the race is competitive despite the district’s conservative lean.
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