TheBlock
Rep. Don Davis introduced the No Betting on Your Own Race Act, which would bar federal candidates, their spouses and dependent children, and authorized campaign committees from trading contracts tied to the candidates’ own elections. The ban covers contracts on whether a candidate wins, stays in the race, or reaches a particular vote share, margin, or placement. Violations would carry a civil penalty of $10,000 or three times the net financial gain, whichever is greater.
Why it matters
The bill also covers indirect interests, including directing or inducing someone else to trade and knowingly providing funds for a trade. Davis said the proposal aims to prevent market interference and insider trading, arguing candidates should be treated like athletes who cannot bet on their own games.
The proposal follows action by Kalshi in April against three U.S. congressional candidates who wagered on their own races. The platform penalized them and suspended each for five years. A separate bill introduced by Rep. Bryan Steil in June would restrict members of Congress, their spouses, and dependents from trading contracts tied to certain government actions, policies, or political outcomes.
Market impact
Davis’ bill would require the Federal Election Commission to maintain a free, public list of federal candidates and update it at least weekly. Candidates would receive notice of the restrictions when filing for federal office.
The measure is a proposal, not a current trading ban. If enacted, its rules would apply to conduct occurring from the date of enactment, placing compliance obligations on election-contract markets and the people covered by the bill.
Frequently asked questions
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Who would the No Betting on Your Own Race Act cover?
It would cover federal candidates, their spouses and dependent children, and authorized campaign committees.
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Which election contracts would the proposal prohibit?
It covers contracts on whether a candidate wins, remains in the race, or reaches a particular vote share, margin, or placement.
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What penalties does the bill propose for violations?
The civil penalty would be $10,000 per violation or three times the net financial gain attributable to it, whichever is greater.
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Would the bill also cover trades made through another person?
Yes. It includes directing or inducing another person to trade and knowingly providing funds for someone else to acquire an interest.
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When would the proposed restrictions take effect?
If enacted, the rules would apply to conduct occurring from the date the bill is enacted. The proposal has not taken effect.
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