Minnesota becomes first state to ban prediction markets
The measure targets Kalshi and Polymarket and makes hosting or advertising prediction markets a felony, with a federal lawsuit already filed.
- Minnesota became the first state to ban online prediction markets, making it a felony to host, operate, or advertise platforms like Kalshi and Polymarket, with the ban effective in August.
- The Commodity Futures Trading Commission sued Minnesota to block the ban, claiming exclusive federal authority over prediction markets and arguing that the law would criminalize lawful operators and harm certain groups like farmers.
- The law targets wagering on future events, including sports, elections, and celebrity appearances, and prohibits services like VPNs that help users bypass restrictions, though updated versions may exempt weather-related contracts used for risk hedging.
- Similar regulatory crackdowns and lawsuits involving the CFTC are occurring or proposed in several states, reflecting ongoing legal conflicts over prediction market oversight and claims that such bans harm competition.
47 Articles
47 Articles
Minnesota law banning prediction markets creates victimless crime
Last October, Minnesota state Sen. Matt Klein (D–Mendota Heights) wagered $50 on the prediction market Kalshi that he would win his congressional primary this August. After Kalshi flagged the bet, Klein was fined $539.85 and received a five-year suspension from the platform in April. While he tried to frame his experience as similar to that of "many other Minnesotans," there should have been no ambiguity to Klein that his actions ran afoul of K…
Minnesota is the first state in the US to crack down on gambling on future events via websites like Polymarket and Kalshi. A new law prohibits these sites from operating in the state starting in August. Remarkably, it is not Polymarket and Kalshi that are appealing, but the Trump administration that is objecting to the law.
Trump administration sues Minnesota over prediction market ban
The Trump administration sued Minnesota on Tuesday over its new prediction market ban, contending it’s preempted by federal law. Minnesota Gov. Tim Walz (D) signed the bill earlier this week, making it a felony to operate or advertise a prediction market in the state. It’s set to take effect Aug. 1. “Minnesota’s attempt to criminalize derivatives contracts is precisely what Congress…
Minnesota bans prediction markets
Minnesota became the first US state to ban prediction markets, in a move that widens the row over the platforms. The White House is suing to overturn the ban. The markets were launched with high-minded ambitions of using the wisdom of the crowd to forecast future events, and help business leaders and politicians make better decisions. But they have been hit by insider-trading scandals, notably involving US military action in Venezuela and Iran. …
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