Minnesota becomes first US state to ban prediction markets
A state law targets betting platforms like Polymarket and Kalshi for the first time. The Federal agency CFTC sees this as an infringement on its jurisdiction.
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As the first US state, Minnesota has passed a far-reaching ban on online prediction markets. The law, now signed by Governor Tim Walz, makes operating and advertising platforms like Kalshi and Polymarket a criminal offense. The Trump administration is responding with a lawsuit to stop the ban before it takes effect on August 1st.
The measure affects platforms where users can bet on the outcome of future events such as elections, court cases, or sports events. The text of the law drew particular criticism from farmers who traditionally use bets on short-term weather events to hedge against crop failures. A subsequent exception is to be passed for this. Providing tools like VPNs will also be punishable if they are knowingly offered to circumvent the state's prediction market blocks.
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Swift Reaction from the Trump Administration
The Commodity Futures Trading Commission (CFTC), a federal agency controlled by the Trump administration, intends to block the ban in court and claims exclusive regulatory authority over the industry. The law “turns lawful operators and participants in prediction markets into felons overnight,” criticized CFTC Chairman Michael Selig, according to NPR. (mho)
