Prediction market platform Kalshi on Wednesday said it penalized three political candidates across three states for betting on their own races.
Kalshi said it was cracking down on “political insider trading,” weeks after the platform rolled out an initiative designed to target such activity, and a day after Gov. JB Pritzker (D-IL) led Illinois in what appears to be the seventh state to bar state employees from using insider information to bet on Kalshi and other betting markets.
Kalshi fined and suspended all three individuals, who have been identified as independent candidate Mark Moran in Virginia, Ezekiel Enriquez, who ran in the Republican primary for Texas’s 21st Congressional District, and Minnesota state Sen. Matt Klein, who is a Democratic candidate for the state’s 2nd District.
“Kalshi does not tolerate anyone cheating or skirting the rules,” Robert DeNault, the company’s head of enforcement, wrote on X. “These three cases are an example of how developing proactive engineering solutions can help identify illicit trading activity, and how individuals who cooperate and take responsibility can mitigate penalties.”
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