Don Davis Bill Would Fine Candidates $10K for Trading on Their Own Elections

In brief

• Rep. Don Davis (D-NC) has introduced a bill barring federal candidates from trading contracts on their own races.
• Violations would draw a civil fine of $10,000 or three times any gain, whichever is larger.
• Platforms would get immunity for closing accounts, unwinding trades and reporting suspected breaches.

Candidates for federal office, their spouses and their campaign committees would be barred from trading prediction market contracts on their own elections under a bill introduced in the House on Monday.

The No Betting on Your Own Race Act, from Representative Don Davis (D-NC), would amend federal election law to make the trade a civil offense carrying a $10,000 fine per violation, or three times the net financial gain, whichever is greater.

"We don't want our athletes to bet on their games," Davis tweeted. "Candidates from different political parties have traded on their own races, and Congress must bring an end to it."

The prohibition is drawn widely, covering the candidate, a spouse, a dependent child and any authorized committee. It encompasses contracts settling not only on who wins but on whether a person remains a candidate at all, and on their vote share, margin or placement. Indirect exposure counts, too, including inducing someone else to trade, holding a beneficial interest however titled, or funding another person's position knowing what it is for.