Western, central and northern Minnesota under windy, dry weather conditions 

MPR News helps you turn down the noise and build shared understanding. Turn up your support for this public resource and keep trusted journalism accessible to all. 

Turn Up Your Support

A Minnesota lawmaker who is a Democratic candidate for Congress has apologized for wagering through an online prediction market that he'd win his party primary. 

State Sen. Matt Klein issued a statement Wednesday about using $50 of his own money last October to wager on the primary for the 2nd Congressional District seat. The seat is open as the incumbent, Rep. Angie Craig, runs for U.S. Senate.

“That was the only wager I have ever made on a predictions market,” Klein said. “This was a mistake, and I apologize.”

Klein said he learned in March he violated the online platform's rules. He said in a follow-up message that he paid a roughly $540 penalty. He is suspended from the prediction market platform, Kalshi, for five years.

Klein is one of three politicians nationally to be sanctioned for using that prediction market in a race they’re involved with, 

. The other candidates are in Texas and Virginia.

Kalshi said it flagged the cases as it pursues what it calls “political insider trading.” In Klein’s case, the site’s statement said an investigation by a surveillance team connected Klein to the account that placed the wager. When Klein was informed, Kalshi’s statement said he “quickly negotiated a settlement” that acknowledged violating exchange rules.

“Regardless of the size of a trade, political candidates who can influence a market based on whether they stay in or out of a race violate our rules,” Kalshi’s statement said. “No matter how small the size of the trade, any trade that is found to have violated our exchange rules will be punished.”

Klein told MPR News he will continue his congressional campaign. 

State Rep. Kaela Berg and former state Sen. Matt Little are also seeking the DFL nomination.

Little made light of his rival’s admission, with a social media post that read: “I thought this might be a good time to say that I do not have a Kalshi account.” 

 to prediction markets over concerns about insider trading and topics that push the bounds of decency. The bill is so far has 

, including one Klein chairs. He is a cosponsor.

“My experience, like many other Minnesotans, points to the need for clearer rules and regulations for these types of markets,” Klein said in his written statement.

Politics and Government News

NewsPartners

Homepage

Brian Bakst

Author

Dana Ferguson

The DFL congressional candidate apologized and paid a fine over a prediction market wager on his race.

Congressional candidate and state Sen. Matt Klein apologizes for prediction market wager

Go Deeper.

Like this?

News you can use in your inbox