Political Betting Platforms Face Insider Trading Concerns Ahead Of Midterms

Political prediction platforms Kalshi and Polymarket are facing scrutiny over potential insider trading as users wager on campaign events ahead of the US midterm elections, according to CNN.

A report by the nonpartisan Anti-Corruption Data Collective found that markets covering predictable political developments have generated more than $20 million in trading volume. Bets include candidate withdrawals, endorsements, rally speeches and whether debates will occur.

Kalshi said it has suspended at least six candidates for betting on their own races and monitors transactions for unusual activity. Polymarket said it uses surveillance measures and refers cases for potential prosecution.

The Trump administration is developing federal regulations for prediction markets after a previous effort to restrict election betting was struck down in 2024.

Related Tweet:

As Kalshi and Polymarket dodge state regulations, prediction markets are upping the ante on next month’s elections. https://t.co/HnOyJ0us1L

— The Intercept (@theintercept) October 9, 2026

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