• Kalshi permanently bans George Santos for insider trading related to his State of the Union attendance.
• Santos placed deceptive bets and made misleading public statements, netting nearly $18,000.
• He has been fined $71,356 and previously faced sanctions from the Commodity Futures Trading Commission.
• Several other political candidates were also penalized for betting on their own races.
• The case highlights increasing regulatory scrutiny of prediction markets.

Prediction market operator Kalshi has issued a lifetime ban on former U.S. Congressman George Santos for allegedly engaging in insider trading related to his attendance at President Donald Trump's State of the Union address. The ban was described as a result of Santos's failure to cooperate with an internal investigation that found he grossed approximately $17,839 from his trades, despite publicly stating he would attend the event, according to CBS News and Reuters.

Kalshi's compliance team concluded that Santos likely engaged in deceptive practices, turning to his social media platforms to mislead followers about his plans while simultaneously placing bets that he would not attend the address. The company imposed a fine of $71,356 on Santos and referred the case to federal authorities for potential further investigation, according to Los Angeles Times, BBC, and NPR.

Santos had previously settled with the Commodity Futures Trading Commission (CFTC) as part of an investigation into his trading practices, agreeing to pay a $35,000 penalty. Following these developments, he communicated his discontent via social media, asserting, "Let's see how much longer you guys are around for," after the ban was announced, according to CBS News and Reuters.

In tandem with Santos's case, Kalshi has imposed similar penalties on other political candidates who were found to have bet on their own races, indicating a broader crackdown on such practices as regulation in prediction markets tightens. Notable penalties included a three-year suspension for Republican congressional candidate Laurie Buckhout, who described her actions as "a dumb mistake,” according to Los Angeles Times and NPR.