Overview
Prediction market operator Kalshi announced on Monday that it has enacted a permanent ban against former U.S. Congressman George Santos and levied a financial penalty topping $71,000. The company said its enforcement action was tied to Santos placing wagers on whether he would attend President Donald Trump’s State of the Union address.
Findings and enforcement
Kalshi, together with statements from the U.S. Commodity Futures Trading Commission, said Santos made social media statements that were false and that those statements benefited his bets. According to the company, Santos did not attend the address after making the posts and realized nearly $18,000 in gains from the wagers.
The CFTC previously fined Santos a month ago for alleged market manipulation connected to the same series of events. Santos was expelled from the U.S. House of Representatives in 2023.
Broader actions by the platform
In addition to the permanent ban and the penalty against Santos, Kalshi said it is issuing penalties and temporary suspensions for three individuals who are current or former political candidates in Maine, California and North Carolina. Those measures relate to alleged bets placed on the outcomes of the candidates' own races.
Related regulatory activity
The move follows other regulatory actions in the space. U.S. regulators previously issued a fine against Gabriel Perez, identified as a former White House teleprompter operator, for allegedly wagering on information about speeches by President Trump.
What the company says
Kalshi characterized the Santos matter as involving false social media statements that created an advantage for his wagers and noted the company would take disciplinary measures where it finds violations of its rules. The CFTC has separately pursued enforcement in the same matter.
Context and limits of the record
The public record described by Kalshi and the CFTC details the platform’s and the regulator’s findings and the sanctions imposed. The information available specifies the penalties, the profit Santos realized from the bets, the locations of other candidates facing penalties or suspensions, and the prior regulatory fine against another individual related to speech-related wagers.
Key facts in this report are drawn from the announcements by Kalshi and statements from U.S. regulators as described above.