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Kalshi’s compliance department uncovered a series of large trades made by Santos throughout February 2026 involving contracts that would pay out based on whether he attended the State of the Union address on 24 February. 

The exchange reported that Santos then issued public statements regarding his attendance, some deemed false or misleading, that were deliberately aimed at influencing the price of “Yes” or “No” contracts connected to his attendance. 

Kalshi stated that these statements successfully moved market prices and that Santos realised profits totalling $17,839.57 from the trades. After detecting Santos’ trades, Kalshi froze his account then referred the matter to federal authorities, NPR reported. 

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“The time was right to reassess this crucial policy area, focusing on the topic of gambling advertising where the former committee’s strong recommendations have been largely unaddressed and where substantial developments in the gambling advertising landscape since 2020 have demanded a re-evaluation of the policy options,” he said.

The committee has advocated for applying a public health framework to gambling advertising regulation. It criticised the existing patchwork of self-regulation, noting the Advertising Standards Authority (ASA) codes, co-regulation for broadcasts and industry-led voluntary measures, were inadequate.

Instead, the report recommended that advertising regulation be placed on a statutory footing under the Gambling Commission.