Prediction market platform Kalshi has issued its first-ever lifetime ban by permanently barring former Republican Congressman George Santos from trading on its site and fining him $71,356. The ban comes after Santos placed multiple large bets between February 2 and 25, 2026, on whether he would attend President Donald Trump's 2026 State of the Union address. Some bets were paired with misleading or false public statements about his attendance plans, which influenced contract prices and led to Santos profiting about $17,839 [1, 2, 3, 4, 5, 6].
The Commodity Futures Trading Commission (CFTC) investigated these trading activities, alleging Santos exploited his insider knowledge and influence over the event's outcome. In July 2026, Santos agreed to pay over $35,000 to settle CFTC charges without admitting wrongdoing. Santos’s lawyer Joseph Murray said the settlement "should not be misconstrued as an admission of any wrongdoing by Santos" but was reached to avoid lengthy litigation [1, 2, 3, 4, 5, 6].
Kalshi also banned several other political candidates for betting on their own races. Laurie Buckhout received a three-year ban and a $2,590 fine, Ben Midgely was banned for three years with a $5,434.30 fine, and Stephen Cloobeck was banned for three years as well. Separately, the CFTC fined Gabriel Perez, a White House teleprompter operator, $65,000 for insider betting and Kalshi banned him for three years [2, 3, 4, 5].
Santos, expelled from the US House of Representatives in December 2023 amid investigations into fraud, lying about finances, and identity theft, responded to the ban on social media platform X with sarcasm. He wrote, "Hey @Kalshi thanks for the lifetime ban from your gambling platform. Let’s see how much longer you guys are around for" [1, 2, 3, 4, 5, 6].
Santos pleaded guilty in 2024 to federal wire fraud and identity theft charges and was sentenced to over seven years in prison. He served about three months before President Trump commuted his sentence in 2025 [1, 2, 3, 5, 6].
The formal lifetime ban and fine announced August 31 marks the latest consequence for Santos’s controversial market activity tied to a high-profile political event [1, 2, 3, 4, 5, 6].
