Kalshi has permanently banned former Republican Rep. George Santos from its prediction market platform and fined him $71,356 over trades tied to his attendance at President Donald Trump’s State of the Union address. The action is the first lifetime ban issued by the company.
Kalshi has also penalized and suspended several political candidates accused of trading on markets connected to their own races. They include Maine Republican gubernatorial primary candidate Ben Midgley, Republican congressional nominee Laurie Buckhout, and former California gubernatorial candidate Stephen Cloobeck.
Kalshi Says Santos Influenced a Market He Traded On
According to Kalshi’s disciplinary notice, its compliance department established reasonable cause to believe Santos traded contracts based on whether he would attend the State of the Union. Kalshi said Santos was prohibited from trading in the market because he could influence the underlying event himself.
The company said Santos placed a series of trades and later made public statements about whether he would attend the address. Kalshi accused him of making statements intended to influence the prices of the contracts and said he earned $17,839 from the activity.
Besides permanently suspending Santos from direct or indirect access to Kalshi, the company imposed the $71,356 financial penalty.
Santos responded on X by thanking Kalshi for what he described as a lifetime ban from its “gambling platform.” He also questioned how long the company would remain in operation.
CFTC Previously Penalized Santos Over the Same Trading
The Kalshi action follows a separate Commodity Futures Trading Commission settlement over the same State of the Union trading activity. Santos agreed to pay an additional $35,000 under that settlement.
The CFTC said Santos traded contracts between February 12 and February 25, 2026, while posting statements on social media about his plans to attend the address. According to the regulator, those statements caused contract prices to move in directions that benefited his positions.
Kalshi’s disciplinary actions also extend to candidates who traded on their own political contests. Midgley lost the Republican primary for Maine governor, while Cloobeck previously ran for governor of California.
The Wall Street Journal first reported Santos’ lifetime ban.
Featured image credits: Wikimedia Commons
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