Texas GOP congressional candidate Zeke Enriquez bet on the outcome of his own election on Kalshi, the prediction market said in a press release Wednesday, marking the latest sign of the industry\u2019s newfound prevalence in the state\u2019s politics.<\/p>\n
Enriquez, who finished 11th in the Republican primary for Texas\u2019 21st Congressional District with 1.4% of the vote, traded less than $100 worth of contracts related to his own candidacy, according to Kalshi regulatory documents<\/a>. Kalshi fined Enriquez $784 and suspended him from the platform for five years after a \u201cfull investigation\u201d with which Enriquez was \u201cfully cooperative,\u201d the company said.<\/p>\n Two other political candidates, in Minnesota and Virginia, were also caught trading on their own elections and suspended from the platform, Kalshi said.<\/p>\n Prediction markets like Kalshi and Polymarket have faced growing scrutiny in recent months, with lawmakers and others raising concerns about insider trading and fears that the exploding industry could undermine the integrity of U.S. elections with the 2026 midterms underway. The suspensions and fines mark one of the most robust enforcement actions taken yet by a prediction market platform against political candidates, according to<\/a> CNN.<\/p>\n A Kalshi spokesperson said the platform referred Enriquez\u2019s case to the CFTC. It did not refer his case to any state agencies, according to the spokesperson, who said it wasn\u2019t required.<\/p>\n Prediction markets have expanded in Texas<\/a> through a federal loophole, even as traditional sports betting and casinos remain outlawed in the state. Ahead of next year\u2019s legislative session, Lt. Gov. Dan Patrick<\/a> instructed Texas state senators<\/a> to \u201cstudy the sudden inundation of prediction market gambling\u201d and \u201cmake recommendations to ensure the integrity of Texas elections and Texas sports.\u201d<\/p>\n Prediction sites allow users to bet on almost any subject, from sports and elections to entertainment and the economy. The platforms are regulated by the federal Commodity Futures Trading Commission. While the Biden administration sought to prohibit election-related prediction markets, the agency under the Trump administration withdrew that proposal<\/a> earlier this year.<\/p>\n Kalshi has sought to convince regulators and lawmakers that it is a responsible operator, publicizing the three cases Wednesday and last month announcing it would preemptively block<\/a> political candidates from trading on their elections, along with barring athletes and coaches from betting on their own sports outcomes.<\/p>\n