U.S. state of Minnesota bans prediction markets
Minnesota has approved the first statewide ban on prediction market platforms, setting up a legal dispute with the federal commodities regulator over who should oversee the fast-growing industry, Qazinform News Agency correspondent reports
Governor Tim Walz signed the law, which prohibits prediction market sites from operating or advertising in Minnesota. The measure defines such markets as platforms where users can wager on future events, including sports, elections, entertainment, public statements, and global affairs.
The ban, due to take effect in August, could force platforms such as Kalshi and Polymarket to stop serving customers in the state or risk criminal penalties. It also covers services that may help users bypass location restrictions, including virtual private networks.
Supporters of the law say Minnesota should decide how gambling-related activity is regulated in order to protect consumers and public safety. The measure includes exceptions for certain event contracts linked to insurance, securities and commodities.
The Commodity Futures Trading Commission has filed a lawsuit seeking to block the law before it enters into force. The agency argues that prediction markets fall under federal authority and should not be regulated by individual states.
The dispute comes as several other states consider restrictions on prediction markets. According to the National Conference of State Legislatures, similar bills have been introduced in 14 states, while Hawaii and North Carolina are weighing statewide bans.
The industry has grown rapidly despite legal uncertainty. Regulators and legal experts continue to debate whether prediction markets should be treated as federally regulated event contracts or as gambling activity overseen by state authorities.
Minnesota currently allows tribal-owned casinos, but online gambling and sports betting are not legal in the state. Prediction market platforms have drawn attention because they can offer access to sports-related wagering in places where sports betting remains prohibited.
Kalshi and Polymarket have opposed the Minnesota ban, arguing that the platforms operate under the federal regulatory framework for prediction markets. The legal battle is expected to add to a wider national debate over the industry’s future.
Earlier, Qazinform reported that the U.S. Justice Department agreed not to pursue pending tax claims against President Donald Trump, his family members, and their businesses, under an addendum to a settlement with the Internal Revenue Service.