Republican Tom Steyer’s odds of becoming the next Governor of California jumped sharply today as news broke of a scandal involving former frontrunner Eric Swalwell.

Steyer’s price jumped to 56%, an increase of 30 points in a week. Among Steyer’s Democratic opponents, Katie Porter is now at 12%, while Swalwell has dropped to 7%.

Swalwell’s drop in the market stems from allegations made by an ex-staffer accusing the Democratic congressman of sexual assault.

The unidentified staffer told The San Francisco Chronicle that she worked for Swalwell for two years while having “sexual encounters.” She also claimed Swalwell assaulted her twice “when she was too intoxicated to consent.”

Swalwell denied the allegations, calling them “false.”

Steyer saw a similar bump in price on the California governor primary advancement market.

The billionaire’s chances rose from 39% to 72%, while Swalwell’s odds fell from 67% to 8% in the same time period. Republican candidate Steve Hilton’s chances of advancing also saw a bump, rising from 60% to 75%.

Despite the scandal and Steyer’s soaring odds, traders still favor the Democrats to retain control of the California Governor’s office.

Markets for the California governor winner by party show the Democrats with an 85% chance to win in November.

Kalshi markets now predict:

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