Blocked election bets reveal insider trading loopholes, Kalshi says

Campaign insiders have repeatedly tried to place bets on political races, and while the prediction market Kalshi has blocked dozens of such trades, at least one has slipped through, according to a joint report from NPR and Georgia Public Broadcasting.

2 sources

NPRCampaign staffers keep trying to bet on races despite push to curb insider tradingGeorgia Public BroadcastingCampaign staffers keep trying to bet on races despite push to curb insider trading

Kalshi says it has blocked "dozens" of trades from campaign insiders, but experts argue that the company's monitoring approach leaves significant loopholes, the outlets reported.

"dozens" of trades from campaign insiders

The leaked trade suggests that self-regulation by prediction markets may be insufficient to prevent insider betting on elections.

NPR found at least one example of a campaign insider whose bet was not intercepted, underscoring the difficulty of fully policing such activity.

The findings come amid a broader push to curb insider trading in political betting, with lawmakers and regulators scrutinizing the industry's practices, according to the report. Experts told NPR and Georgia Public Broadcasting that the existing loopholes point to the need for more robust oversight.