Politics
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Republican former gubernatorial candidate Ben Midgley has been temporarily banned from accessing Kalshi as part of a settlement after betting on himself in violation of company rules, the prediction market announced Monday.
Midgley, a former fitness executive who was runner up in the June 9 primary to Republican attorney Bobby Charles, purchased less than $1,000 in contracts “related to his own candidacy” while he had “direct influence on the outcome of the underlying event,” Kalshi said in a Friday disciplinary notice.
The prediction market’s compliance department found that Midgley cooperated with the inquiry into his trade and paid a fine of more than $5,400. He is suspended from direct or indirect access to Kalshi for three years.
News of the disciplinary action, which was first reported by Reuters, comes as debate persists over regulating prediction markets and as other lawmakers and candidates have been hit with fines and penalties. Kalshi permanently banned former U.S. Rep. George Santos of New York, who was expelled from Congress before pleading guilty to identity theft and fraud, over trades tied to his attendance of the State of the Union. He profited more than $17,000 from the trades, Kalshi said.
Midgley, whom many Republicans described during the primary as a rising star in the party, said in a statement that he was not aware of “the fine print that candidates could not support themselves.” He noted that he did not attempt to hide his name or identity.
“I viewed Kalshi as a novelty and entertainment source,” he said. “The moment I became aware the site preferred not to have candidates supporting themselves, I suspended any involvement.”
He added that it’s “hard to take a site seriously which allows bets on virtually anything.”
“Obviously, the novelty has worn off,” he said. “I had no winnings and made a donation to charity in accordance with Kalshi’s policies.”
Santos, who served time in federal prison before President Donald Trump commuted his sentence, also claimed Kalshi was “an unserious company,” saying they leaked the notice before a 30-day window given to those who faced penalties.
“Thanks for the lifetime ban from your gambling platform,” he said on X. “Let’s see how much longer you guys are around for.”
Kalshi rules bar members from trading on any contract “where they have material non-public information” or have any affiliation with sources tied to an event, along with trading “on any contract where they have influence on the outcome.”