Kalshi: Three candidates illegally bet on their own campaigns, fined and barred for five years

According to a report by The New York Times on April 23, the prediction-market platform Kalshi issued disciplinary actions against three political candidates who tried to bet on their own election events, and the disciplinary action letters have been posted on the Kalshi website. Bobby Deno, head of Kalshi’s enforcement and legal counsel, said the sanctions were part of the platform’s “proactive engineering solution,” aimed at identifying trading activity that violates the platform’s recently updated rules.

The candidates’ violations and individual penalty outcomes

According to Kalshi disciplinary action letters and a report by The New York Times on April 23, the violations and penalties for the three candidates are as follows:

Mark Moran (Virginia independent Senate candidate): Bet on his own campaign’s win, refused to cooperate with a Kalshi investigation, and refused multiple settlement options proposed by the platform. He was fined $6,229.30 and banned for five years. Moran said in an interview with The New York Times that he knew the matter would be made public when he placed the bets, with the goal of “drawing attention to this harmful habit that undermines democracy.”

Ezekiel Enriquez (former Republican congressional candidate in Texas): Tried to bet on his own campaign; the trade was blocked by the system before it could be executed. Enriquez admitted to wrongdoing, accepted a small fine and a five-year ban. Enriquez did not respond to The New York Times’ request for comment.

Matt Klein (Minnesota Democratic state senator and current congressional candidate): In October 2025, bet $50 that he would win the primary. According to Klein’s own statement, after he was notified in March 2026 that he violated platform rules, he paid a fine and agreed to have his account suspended. In his statement, Klein said: “That was the only time I bet on a prediction market. It was a mistake, and I’m very sorry.”

According to a report by The New York Times, Matt Klein is also a co-sponsor of a bill in Minnesota aimed at banning prediction markets, which is currently under committee review.

Kalshi Regulatory Background: CFTC Oversight, a Congressional Bill, and a Lawsuit in Arizona

According to a report by The New York Times on April 22, Kalshi is overseen by the U.S. Commodity Futures Trading Commission (CFTC). In March, both chambers of the U.S. Congress submitted a bill intended to limit the use of prediction-market websites by government officials. The Arizona attorney general also filed criminal charges against Kalshi in March, alleging that the company was operating an illegal gambling business; a Kalshi spokesperson denied the allegations.

The report also noted that there is a connection between President Donald Trump Jr.’s eldest son and Kalshi, as well as the other major prediction market Polymarket, raising concerns among ethics experts. According to a blog post published by Kalshi in December last year, the platform has tens of millions of users placing bets on 3,500 markets each week.

Frequently Asked Questions

What are the specific penalty outcomes for three candidates under Kalshi? According to Kalshi disciplinary action letters and a report by The New York Times on April 22, Mark Moran was fined $6,229.30 and banned for five years for refusing to cooperate with the investigation; Ezekiel Enriquez and Matt Klein both admitted to wrongdoing and each accepted a small fine and a five-year ban.

What regulatory and legal actions are currently underway against Kalshi? According to a report by The New York Times on April 22, in March 2026, both chambers of the U.S. Congress submitted a bill intended to limit government officials’ use of prediction-market websites; the Arizona attorney general also filed criminal charges against Kalshi in March, and Kalshi denied the allegations. Kalshi is overseen by the CFTC.

What statement did Matt Klein make regarding his betting on his own campaign? According to Matt Klein’s own statement, in October 2025 he bet $50 on himself winning the primary; after he was notified in March 2026 that he violated platform rules, he paid a fine and agreed to have his account suspended, and said, “That was the only time I bet on a prediction market. It was a mistake, and I’m very sorry.”