Kalshi bans ex-congressman George Santos for life

WASHINGTON — Ex-Long Island congressman George Santos has been fined and hit with the first lifetime ban on placing wagers through the prediction market Kalshi for betting on his own attendance at this year’s State of the Union address.

The company said there is "reasonable cause" Santos placed his trades in a way that allowed him to make a $17,839 profit with postings on the social media site X saying he planned to attend President Donald Trump’s February address — only to then not show up.

Kalshi’s rules state a person capable of influencing the outcome of an event cannot bet on the same event.

"The Compliance Department has issued a penalty permanently suspending Santos from direct or indirect access to Kalshi and has imposed a penalty of $71,356," Kalshi’s formal notice of settlement of disciplinary action stated.

In a separate statement, Kalshi’s head of enforcement, Robert J. DeNault, said Santos did not cooperate with the company’s investigation. The company confirmed this is its first such lifetime ban.

Santos’ lawyer, Joe Murray, did not immediately comment on Monday. But Santos posted on X: "Hey @Kalshi thanks for the lifetime ban from your gambling platform. Let's see how much longer you guys are around for."

The Kalshi fine comes on top of a previous $35,000 regulatory settlement Santos agreed to pay last month with the Commodity Futures Trading Commission over the same trades.

That agency regulates the country's derivatives markets, including futures, options and swaps — and now predictive markets like Kalshi and rival Polymarket.

As part of that CFTC settlement, Santos had already accepted a three-year ban from such trading.

Santos' lawyer, Murray, had previously explained this was the first time Santos had traded on a prediction market, and that he actually did book travel to attend the State of the Union. But Murray said winter weather along the East Coast led Santos to decide it wasn't safe to travel.

Santos’ fine and ban announced Monday was not the only disciplinary action announced in recent days involving Kalshi and people tied to politics or government.

On Monday, it was also announced that Laurie Buckhout, a Republican running in a North Carolina congressional race, has been banned from trading for three years and fined more than $2,500. The company alleged she bet on whether she would win the congressional seat.

And on Friday, the CFTC announced a former longtime White House teleprompter operator will pay $172,000 to settle allegations he improperly placed wagers on Kalshi about words Trump would use during speeches.

The actions against Santos come as platforms like Kalshi and Polymarket are under intense scrutiny as users engage in sometimes billions of dollars of wagering each week on real-world events ranging from public policy, elections, the economy and national security concerns.

Santos, who represented a congressional district that includes parts of Nassau, Suffolk and Queens counties, became the sixth member of the U.S. House ever expelled in December 2023. That came after a Committee on Ethics report detailing misuse of campaign funds and lying on financial filings.

But federal prosecutors by then had already indicted Santos in 2023 on multiple charges of wire fraud, money laundering, theft of public funds, making false statements to Congress, identity theft and unauthorized use of donor credit cards. He initially pleaded not guilty, but ultimately admitted the charges in August 2024.

In April 2025, Santos was sentenced to 7 years in prison. Months later, Trump commuted his sentence. In doing so, he described Santos on the social media site Truth Social as "somewhat of a rogue," but one Trump said had "the courage" to always vote Republican.