Prediction market Kalshi announced it has suspended three political candidates for allegedly trading on confidential campaign information. The enforcement action follows new guardrails introduced last month to block politicians and athletes from betting on events they can influence. The three officials—Mark Moran (Virginia), Matt Klein (Minnesota) and Ezekiel Enriquez (Texas)—were flagged by those rules.

Kalshi settled with Klein and Enriquez, who cooperated during the probe. Both will pay fines under $1,000 and face suspensions up to five years. Moran received a disciplinary action that includes a five‑year suspension and a $6,000 fine, after claiming the case was a stunt to expose the platform.

The moves arrive as state attorneys general in Nevada, Arizona and New York pursue gambling‑related lawsuits against prediction markets, while a federal appeals court rebuffed New Jersey’s bid to regulate the industry. The Commodity Futures Trading Commission is also suing to retain sole oversight, underscoring the sector’s fraught legal environment.