Prediction market Kalshi has suspended Republican congressional candidate Laurie Buckhout from its platform for three years after determining she placed bets on her own race in North Carolina's 1st District. The company also fined her $2,589.96 as part of a settlement that took effect Friday, according to a notice published Monday.
Buckhout, who launched her campaign last December, purchased less than $1,000 worth of contracts related to her contest against incumbent Democrat Rep. Don Davis. Kalshi's rules prohibit traders from wagering on events where they are a “decision maker” or have “any influence” over the outcome. The company said Buckhout, as a candidate, directly met that definition.
In a statement to The Hill, Buckhout acknowledged the misstep: “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.” She cooperated with Kalshi's inquiry, per the notice. A Kalshi spokesperson declined further comment.
The suspension adds another wrinkle to an already competitive race. Buckhout won the GOP primary in March, setting up a rematch with Davis, who defeated her in 2024 by less than 2 percentage points. Republicans in the state legislature redrew the district last fall, and the nonpartisan Cook Political Report now rates it as leaning Republican.
Buckhout, a retired Army colonel with 26 years of service, served briefly as acting assistant secretary of defense for cyber policy last year. After retiring from the military in 2010, she founded a consulting group focused on electronic warfare and cyberspace operations.
She is not the first political candidate to run afoul of Kalshi's rules as prediction market activity has surged. Earlier this year, Kalshi suspended Minnesota state Sen. Matt Klein (D), former Texas congressional candidate Ezekiel Enriquez, and Virginia Senate candidate Mark Moran (I) for five years after they admitted to betting on their own races. Klein and Enriquez paid fines of $539.85 and $784.20, respectively; Moran, who did not appear on the general election ballot, declined to settle and was fined $6,229.30.
On the same day, Kalshi banned former Rep. George Santos (R-N.Y.) for life after he failed to cooperate in a probe over wagers he placed on his attendance at this year's State of the Union address. The company also fined Santos $71,356.
The incidents highlight the growing scrutiny of prediction markets in politics, where candidates and insiders could potentially profit by trading on events they influence. Kalshi's enforcement actions signal a stricter approach, though critics question whether fines and bans are sufficient deterrents.
