Kalshi fines, suspends three U.S. congressional candidates for betting on own elections

Prediction market operator Kalshi has fined and suspended three congressional candidates for wagering on the outcome of their own elections, in what the company described as violations of its exchange rules.

The company said the candidates — Mark Moran, an independent running in Virginia’s U.S. Senate race; Ezekiel Enriquez, a Republican primary candidate for a U.S. House seat in Texas; and Matt Klein, a Democratic state senator running for a U.S. House seat in Minnesota — were each suspended from the platform for five years.

Kalshi said the violations were identified through newly implemented safeguards aimed at preventing political candidates from trading on their own elections.

Fines varied depending on the candidates’ level of cooperation with the company’s investigation. Moran was fined more than $6,200 after declining to reach a settlement, while Klein and Enriquez agreed to settlements and were fined about $539.85 and $784.20, respectively.

“All three cases concern political insider trading and were flagged because of our newly released safeguards to block political candidates from trading on their own elections,” Kalshi said in an enforcement update.

Kalshi emphasized that even small wagers would be punished if they breached its rules. The bets placed by the candidates were relatively small, generally under $100. Moran said on social media that he “traded $100 on myself.”

Klein acknowledged the violation and apologized. “This was a mistake and I apologize,” he wrote on X, adding that the experience highlighted the need for greater regulation of prediction markets.

The case comes amid heightened scrutiny of prediction market platforms, including Kalshi and Polymarket, with lawmakers from both parties raising concerns about potential insider trading and the influence of such platforms on elections.

U.S. Representative Mike Levin, a California Democrat, criticized the penalties as insufficient, saying: “That’s not a punishment. That’s a parking ticket.”

Kalshi said the enforcement actions were taken under its own rules and were not brought by the Commodity Futures Trading Commission, which oversees prediction markets in the United States.

Moran, who declined to settle with the company, said his actions were intended to draw attention to the influence of such platforms. “When I piss people off, when I upset people, and when I captivate their attention, that’s when they have to start listening,” he said.

Kalshi defended its enforcement efforts, stating that cases like these demonstrate its commitment “to policing all types of unfair or improper trading on our platform,” adding that its team is monitoring markets and investigating trading violations 24/7.