Kalshi suspension: Minnesota senator bet $50 on himself to win primary

MENDOTA HEIGHTS, Minn. (FOX 9) - Minnesota Sen. Matt Klein (DFL- Mendota Heights) bet on himself to win the Democratic Primary in the 2nd Congressional District. 

MN senator bets on himself to win

What we know:

Sen. Klein bet $50 on him on the prediction market website, Kalshi, which is a violation of the site's rules. 

According to Kalshi, Sen. Klein paid a fine of $539.85 and is suspended from the website for five years. 

Sen. Klein was caught during a crackdown on what Kalshi is calling "political insider trading" on the prediction market site. 

Two other politicians were caught betting on their own candidacies, a Texas Republican running for Congress, and a Virginia Democrat running for Senate. 

Kalshi states these incidents were flagged because of new safeguards against political candidates betting on their own elections. 

Sen. Klein is running for the 2nd Congressional District seat as a Democrat. The primary is set for August 11. 

What they're saying:

Sen. Klein sent the following statement regarding the bet: 

"In October 2025 I heard from friends that there was a prediction market site with wagers on my primary race. 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. I was informed in March of 2026 that this was a violation of the platform rules. In compliance with their request, I paid a penalty and agreed to be suspended from the platform. That was the only wager I have ever made on a predictions market. This was a mistake, and I apologize. My experience, like many other Minnesotans, points to the need for clearer rules and regulations for these types of markets."

Klein at center of prediction market ban

Dig deeper:

Sen. Klein is currently a co-author on a bill that would ban prediction markets like Kalshi in Minnesota. 

The senator said back in March that prediction markets are "problematic and unregulated" and allow people to bet on sensitive topics. He adds that it gives Minnesotans a loophole for sports betting, which is currently illegal in the state. 

Sen. Klein advocated for a ban on prediction markets but supports the legalization of sports betting in Minnesota. 

READ MORE: Minnesota's gambling loophole: Lawmakers tackle prediction markets

"They can bet on sports on these prediction markets. They're doing it freely right now. The problem is that we don't have any guardrails or safety concerns or safety barriers for people who are problem gamblers or underage gamblers. And we're not getting any tax revenues out of it," Sen. Klein said in March.