Minnesota Bans Prediction Markets, Citing Gambling Concerns
Minnesota has enacted the nation’s first law prohibiting prediction market sites from operating within the state, criminalizing hosting and advertising these platforms. This move has prompted a federal lawsuit from the Trump administration, which asserts exclusive regulatory authority over prediction markets, leading to a significant legal confrontation over the oversight of these increasingly popular services. While the law includes carve-outs for insurance-like contracts and securities, and an amendment is expected to allow weather-related trading due to agricultural industry pushback, the core ban remains in effect, potentially forcing major sites like Kalshi and Polymarket to cease operations in Minnesota.
John Q. Hosedrinker