Prediction market platform Kalshi has fined and suspended three U.S. congressional candidates for wagering on the outcomes of their own elections, a move the company says violates its rules against insider trading. The candidates are barred from the platform for five years.
The case marks one of the most high‑profile incidents of alleged insider trading in prediction markets, which include Kalshi and Polymarket. Both platforms have drawn bipartisan scrutiny in Congress, with lawmakers calling for stricter regulation of websites where users can stake money on political, economic, and even cultural outcomes.
The candidates involved
According to Kalshi’s filings, Mark Moran, an independent running for Virginia’s U.S. Senate seat, Ezekiel Enriquez, a Republican primary candidate for a U.S. House seat in Texas, and Matt Klein, a Democratic state senator campaigning for a U.S. House seat in Minnesota, have all been suspended.
Kalshi reported that Klein and Enriquez wagered less than $100 each on their own candidacies, while Moran admitted on social media that he “traded $100 on myself.”
Context of larger bets
These relatively small wagers pale in comparison to the massive sums circulating on prediction markets. For one, an anonymous Polymarket wager reported receiving $400,000 after betting that former Venezuelan President Nicolás Maduro would be out of office.
Regulatory pressure
Congressional scrutiny of prediction markets like Kalshi and Polymarket has intensified in 2026. Lawmakers warn that inside trading and election wagers pose risks to public trust. Additionally, committees in both chambers are preparing hearings, and bipartisan legislation is being drafted to tighten oversight, as reported by media outlets.
Last month, following the introduction of legislation by two U.S. senators targeting prediction markets, both Kalshi and Polymarket announced new rules prohibiting political candidates from betting on their own campaigns.
Moran rejected a settlement with Kalshi and was fined more than $2,000. Klein and Enriquez accepted agreements, each facing a penalty of $530. Critics in Congress, however, argue that these punishments are too lenient. Representative Mike Levin likened the sanctions to a “timeout” or a “parking ticket.”
While an American weapons officer was evading enemy forces in Iran, there was a live betting market on what day he’d make it home.
— Rep. Mike Levin (@RepMikeLevin) April 22, 2026
Military Times is out with a piece everyone should read on how this goes from morally indefensible to a genuine national security threat.
We know…
Oversight questions
The penalties were issued internally by Kalshi and not by the Commodity Futures Trading Commission (CFTC), the federal agency overseeing prediction markets. The CFTC, chaired by Michael Selig, has generally been viewed as supportive of the industry’s growth.
Candidate responses
Moran defended his actions on X, saying he placed the bets to raise awareness of what he described as Kalshi’s harmful influence: “We live in a country destroyed by vice, which Kalshi directly contributes to.” He claimed the platform is “destroying young men.”
Klein also acknowledged Kalshi’s findings, posting that his $50 wager in October was his first time using a prediction market. He called it a mistake, apologised, and said the experience underscored the need for stronger regulation. Klein is a co‑sponsor of a bill advancing in the Minnesota Legislature that would ban most forms of predictive wagering, including bets on election outcomes.
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