Platforms Face Penalties Amid Calls for Greater Oversight as Company Pledges Proactive Policing of Insider Trading

Prediction market platform Kalshi has docked three U.S. Political candidates for betting on their own races, the company confirmed in an announcement tied to heightened regulatory scrutiny of political wagering platforms.

The action follows updated integrity rules introduced by Kalshi and rival platform Polymarket in March 2026, which prohibit users from trading on events they can influence, including political candidates wagering on their own electoral outcomes. The platforms implemented proactive screening tools to block athletes, coaches, and political candidates from accessing markets related to their campaigns or competitions.

Kalshi’s updated rules, part of a broader industry response to legislative and regulatory pressure, explicitly ban insider trading and market manipulation by prohibiting trades based on stolen confidential information or illegal tips. The changes were driven by calls from U.S. Lawmakers for greater oversight of prediction markets, particularly those involving politically sensitive events.

While the specific identities of the docked candidates were not disclosed in the announcement, Kalshi stated the penalties were applied after detecting violations of its newly enforced integrity policies. The platform emphasized its shift from reactive to proactive enforcement to reduce manipulative behavior and protect market integrity.