Minnesota state Sen. Matt Klein was suspended from a popular online prediction market after he bet on the outcome of the election in Minnesota’s Second Congressional District. Klein is currently a DFL candidate in that election.
According to a settlement notice, Klein was suspended from Kalshi after betting less than $100 on the outcome of his own congressional candidacy. Kalshi is an online prediction market where users place bets on sports, political activities, and other events.
Kalshi said Klein’s conduct violated their rules which prohibit users from trading on an event where the user is a decision maker in that event. The settlement notice did not say when Klein made the bet or whether he bet on himself to win or lose.
As part of the settlement, Klein was suspended from Kalshi for five years and received a financial penalty of $539.85. In a press release about the situation, Kalshi referred to Klein’s case, and other related cases, as “political insider trading.”
“Just like in traditional financial markets, bad actors will try to cheat,” the press release said.
Alpha News contacted Klein for this story but did not immediately hear back. Klein released a statement Wednesday afternoon.
“In October 2025 I heard from friends that there was a prediction market site with wagers on my primary race,” Klein said. “I had never wagered on a predictions market previously. I was curious about how it worked. I set up an account and bet $50 of my own funds that I would win the primary.”
Klein went on to say that he was informed in March of this year that his bet was a violation of Kalshi rules. He said he agreed to be suspended from Kalshi.
“That was the only wager I have ever made on a predictions market,” Klein added. “This was a mistake, and I apologize. My experience, like many other Minnesotans, points to the need for clearer rules and regulation for these types of markets.”
Klein is currently a co-author of SF 4511, a bill that prohibits the operation of prediction markets in Minnesota. A nonpartisan research summary of the bill says, “To give practical context, this bill would likely make at least some of the conduct of businesses like Kalshi and Polymarket a felony crime if conducted in Minnesota.”
A third-term senator, Klein announced his candidacy for Minnesota’s Second Congressional District in May of 2025. The district includes much of the Twin Cities south metro area. Klein is one of several DFL candidates running for the Democrat-leaning seat.
One of Klein’s DFL opponents, former state Sen. Matt Little, reacted to today’s news, saying, “I thought this might be a good time to say that I do not have a Kalshi account.”
At present, Klein and Little are the two leading candidates for the DFL nomination in the district. Little has raised over $716,000 since he first announced his candidacy and has over $400,000 in cash on hand as of March 31.
Meanwhile, Klein has raised $699,000 during his candidacy and had roughly $365,000 at the end of last quarter. Other DFL candidates include state Rep. Kaela Berg, who has raised more than $244,000, and Hugh McTavish, who has raised $53,000.
On the Republican side, state Sen. Eric Pratt is the only remaining candidate after Tyler Kistner dropped out earlier this month. Pratt has raised $259,000 and has roughly $119,000 in cash on hand as of March 31.
Luke Sprinkel
Luke Sprinkel previously worked as a Legislative Assistant at the Minnesota House of Representatives. He grew up as a Missionary Kid (MK) living in England, Thailand, Tanzania, and the Middle East. Luke graduated from Regent University in 2018.
