The No Betting on Your Own Race Act would bar federal candidates, their campaigns and their immediate family members from trading contracts tied to their own races — but it will not be taken up before the 2026 United States midterms, as Congress is on recess until after the election.

A North Carolina lawmaker has introduced legislation aimed at blocking politicians from using prediction market platforms to potentially profit from their own elections.

On Monday, Rep. Don Davis introduced the No Betting on Your Own Race Act, which would prohibit federal candidates, their campaigns, and their spouses and children from “buying, selling, acquiring, disposing of, or holding contracts” related to their elections, according to a press release from the congressman’s office.

Davis said the legislation was designed to prevent market interference and insider trading, and to stop lawmakers from “cashing in” on elections. Under the proposal, violators would face a civil penalty of $10,000 for each violation, or three times the amount of any potential financial windfall.

Although the text of the bill does not explicitly mention prediction market platforms such as Kalshi and Polymarket, it refers to “political event contracts,” signaling that the legislation targets activity conducted through such companies.

Concerns about politicians wagering on their own races have already surfaced on prediction markets. In August, Republican House of Representatives candidate Laurie Buckhout received a three-year suspension and a $2,590 penalty from Kalshi over trading event contracts related to her race, as previously reported, though she did not face civil or criminal charges. The case illustrates how enforcement currently runs through the platforms themselves, with Kalshi acting under its own rules, while the bill would put penalties for candidates on a statutory footing.

Davis’ bill will not be addressed before the 2026 midterm elections, as the House and Senate are out of session until November, though the House has continued to hold some pro forma sessions. Under standard congressional practice, bills not enacted by the end of a two-year Congress expire and must be reintroduced, meaning the measure’s path forward runs through the next session.

Event contracts on United States elections remain available on both Kalshi and Polymarket, with the platforms currently offering better odds on Democrats retaking control of Congress in 2027.

Related: New York sued Polymarket over an alleged illegal gambling business.