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Former New York Congressman George Santos has been banned from the prediction market platform Kalshi for betting on himself. Santos was fined over $70,000 for wagering he would not attend President Trump's State of the Union address after publicly announcing he would be there. Kalshi issued its first-ever lifetime ban to Santos, citing "his lack of cooperation" during the investigation.
According to NPR, Santos' video confirming his attendance led to a spike in betting odds, but he did not show up. He had placed bets predicting his absence, profiting from the deception. Kalshi detected the trades, froze his account, and referred the case to the Commodity Futures Trading Commission and the Department of Justice, which opened investigations.
Santos responded to the ban on X, saying, "Thanks for the lifetime ban from your gambling platform. Let's see how much longer you guys are around for." NBC News reported that Santos was expelled from Congress in 2023 while under federal investigation for fraud. He served four months of a seven-year sentence before President Trump commuted it.
The case highlights ongoing concerns about insider trading in prediction markets. Federal authorities are scrutinizing these platforms, with recent cases involving military and tech employees exploiting insider information.