Former Rep. George Santos Monday was banned for life by Kalshi after the prediction market found he likely made bogus bets on whether he would appear at President Trump’s State of the Union address.
The company announced the ban after saying it determined Santos engaged in insider trading by betting against his own attendance at Trump’s State of the Union address, then skipping the event. It also slapped Santos with a $71,356 fine.
The disgraced former Long Island Republican congressman responded by mocking Kalshi, which he derided as a short-lived “gambling” site.
“Thanks for the lifetime ban from your gambling platform,” Santos tweeted, adding a lipstick-kiss emoji. “Let’s see how much longer you guys are around for.”
Santos who was convicted of unrelated federal fraud charges was granted clemency by Trump and freed from prison last year.
Despite having been expelled from the House of Representatives, Santos and all former lawmakers retain the right to appear on the floor of the House.
Santos sought to drum up interest in his possible attendance at the SOTU by repeatedly posting about his plans to show up. Those tweets pushed up the odds on Santos attending to close to 75%, meaning anyone betting against him making an appearance stood to make more money.
Unbeknownst to ordinary bettors, Santos himself was placing his own big money wagers that he would not show up.
Minutes into the speech, Santos tweeted that he was delayed en route to the event and never showed his face. He won an estimated $13,000, the company said, adding that his bets and actions violated its terms of engagement.
Several people, including some public figures, have been entangled in insider trading allegations tied to prediction market bets, including military service members who wagered on possible U.S. military actions that they were informed about, bets that could potentially give insight to foreign adversaries.
The markets, including Kalshi and Polymarket, have exploded in popularity and permit users to bet on all manner of events, including sports, politics and geopolitical affairs.
