Republican congressional candidate Laurie Buckhout has been suspended from the prediction market platform Kalshi after betting on her own upcoming election.
The financial exchange publicized a notice of disciplinary action against Buckhout on Monday, issuing a three-year ban and a financial penalty of $2,589.96. The settlement went into effect on Friday.
Direct Influence Violation
The platform's compliance department determined that Buckhout violated a strict rule prohibiting any trader who is a "decision maker" or has "any influence, directly or indirectly" over the outcome of an event from trading on those contracts.
According to Kalshi's findings, after Buckhout announced her candidacy for public office, she was added as a market option for a contract tracking the North Carolina 1st Congressional District election. The exchange ruled that as an active candidate, she qualified as a direct decision-maker with clear influence over the race.
The settlement reveals that Buckhout purchased less than $1,000 worth of contracts related to her own candidacy.
In an emailed statement to WITN-TV, Buckhout acknowledged the trades. “I bet on myself. Literally. 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,” Buckhout said.
Davis Condemns "Breach of Public Trust"
Her opponent, incumbent Democratic Congressman Don Davis, issued a sharp rebuke following the announcement of the disciplinary action, framing the incident as self-serving.
“Eastern North Carolinians are struggling with the everyday costs of healthcare, gas, groceries, and housing, while my opponent treats a congressional election as an opportunity to cash in,” Davis said in a statement to WITN-TV.
Davis further argued that the trading activity should eliminate her from consideration by voters in the district.
“The news that my opponent was caught, fined, and slapped with a three-year ban for trading on insider information is a disqualifying breach of public trust,” Davis added. “Our campaign is a coalition of Democrats, Republicans, and independents who put eastern North Carolina first, not themselves.”
The two candidates will face off in the general election this November.
