MN State Sen. Matt Klein Fined After Betting On Own Race

ST. PAUL, MN — Prediction market platform Kalshi says Minnesota state Sen. Matt Klein, who is also running for Congress in Minnesota's 2nd District, was fined and suspended after the company determined he traded on the outcome of his own race.

In an enforcement update published Tuesday, Kalshi said one of three new political insider trading cases involved a candidate in the Democratic primary for Minnesota's 2nd Congressional District.

The company said its systems flagged the trade, investigators confirmed the trader was the same person as the candidate, and the matter ended in a settlement.

Kalshi said Klein, a Democrat, acknowledged violating exchange rules, agreed to pay a $539.85 fine and accepted a five-year suspension from the platform.

Klein confirmed he was the candidate described in the case on Wednesday.

In a statement released by his campaign, Klein said he opened a Kalshi account in October 2025 after learning people were placing wagers on his race and put down $50 on himself to win.

Klein said he was informed in March 2026 that the trade violated platform rules, paid the penalty, accepted the suspension, and apologized, calling it a mistake.

Kalshi said the Minnesota case was one of three enforcement actions announced Tuesday involving candidates trading on their own elections.

The company said two of the cases ended in settlements after the traders acknowledged the violations, while a third candidate in Virginia was fined more than $6,000 and suspended for five years after, according to Kalshi, failing to cooperate.

Klein represents Senate District 53 in the Minnesota Senate and is running for Congress in Minnesota's 2nd District. He said the episode shows there is a need for clearer rules and regulations around prediction markets.