North Carolina Republican Hit With Kalshi Fine for Trading on Her Own Race

North Carolina Republican Laurie Buckhout, a candidate for a Democratic-held congressional seat, has received a fine and suspension from Kalshi after trading on her own political race. The rise of prediction markets, like Kalshi and Polymarket, has raised concerns about government ethics, as some politicians have been implicated in insider trading.

Kalshi shared a notice of settlement on Monday, stating that Buckhout, an Army veteran seeking the 1st District seat, had violated Rule 5.17(z) by trading when she was a decision maker or had influence over the election outcome. She purchased under $1,000 worth of contracts related to her candidacy, and must pay a $2,589.96 fine and a three-year suspension from Kalshi.

Buckhout admitted her mistake and cooperated with the inquiry, accepting the findings, the fine, and the trading restriction. Democratic Congressional Campaign Committee spokesperson Madison Andrus condemned Buckhout, stating that she should not be trusted to represent North Carolina families if she cannot follow basic prediction market rules.

Buckhout is competing in a northeastern North Carolina district, redrawn to favor Republicans, which has been held by Democratic Representative Don Davis since 2024. The district backed Trump by nearly 12 points in the 2024 election, but Democrats view it as competitive due to Trump's declining approval ratings. Independent polls show a close race, with Davis leading by 4 points in a June survey and the Coefficient poll showing both candidates tied at 41 percent.

Republicans are favored in the generic ballot by about 4 points. Former Representative George Santos was also permanently banned from Kalshi and fined $71,356 for insider trading related to his own attendance at President Trump's State of the Union address.