Industry
Minnesota prohibits prediction markets, promptly gets sued by Trump admin
Minnesota became the first state to ban prediction markets when Governor Tim Walz signed a public safety bill into law, making operation, promotion, or advertising of platforms like Kalshi and Polymar
Minnesota became the first state to ban prediction markets when Governor Tim Walz signed a public safety bill into law, making operation, promotion, or advertising of platforms like Kalshi and Polymarket a criminal felony. The Trump administration's Commodity Futures Trading Commission immediately filed a lawsuit arguing that the state law is preempted by federal authority, contending that Congress granted the CFTC exclusive jurisdiction over these event-contract derivatives. While the CFTC has filed lawsuits against other states over local restrictions, Minnesota's law goes a step further by imposing explicit criminal penalties.
Source: Ars Technica | 2026-05-20