North Carolina Republican congressional candidate Laurie Buckhout has been fined approximately $2,600 and suspended for three years from the prediction market platform Kalshi after placing a wager on her own race, the company announced Monday. Buckhout, a retired Army colonel and former Pentagon official who worked on cybersecurity policy during the Trump administration, is running against Democratic incumbent Don Davis in North Carolina’s 1st Congressional District.
Kalshi stated that Buckhout violated their rules prohibiting political candidates from betting on their own elections. The candidate reportedly wagered less than $1,000, although exact details of the bet and its timing were not disclosed. Buckhout cooperated fully with Kalshi’s investigation and accepted the penalty and suspension without dispute.
In comments provided to news outlets, Buckhout acknowledged the violation, saying, “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.” Kalshi spokesperson Elisabeth Diana emphasized the platform's commitment to monitoring and enforcing rules against insider trading and market manipulation, saying it is a matter of catching violations and acting swiftly.
The incident highlights ongoing challenges faced by prediction market platforms as they work to prevent abuses involving candidates and government officials, who may have inside information about electoral outcomes. Kalshi has taken steps in recent months to address such concerns. Earlier this year, the company issued five-year suspensions to three congressional candidates who placed bets on their own races.
On the same day Buckhout’s suspension was announced, Kalshi imposed a lifetime ban on former Republican Congressman George Santos after he failed to comply with an internal investigation. Santos had previously been fined by the Commodity Futures Trading Commission for allegedly influencing a market bet about his attendance at the State of the Union address.
North Carolina’s 1st District, situated in the northeastern part of the state, is considered a competitive swing district. Republicans view it as a potential pickup opportunity following recent redistricting efforts aimed at making the seat more favorable for GOP candidates. Buckhout’s campaign did not provide further comment on the betting incident, and Kalshi declined to disclose additional information regarding the specifics of the wager.