The Commodity Futures Trading Commission has sued Minnesota to block a new state law that would effectively ban prediction markets starting Aug. 1.
The law, signed by Gov. Tim Walz on Monday as part of larger legislation, would make it illegal to offer or advertise event contracts on platforms like Kalshi and Polymarket tied to sports, games played with cards or dice, war, natural or human-made disasters, elections, short-term weather conditions, and pop culture events like award shows. Mention markets, which allow users to bet on what someone will say in a given speech or appearance, would also be barred.
Violations could carry criminal penalties, including potential felony-level exposure depending on the conduct.
While many states, including Arizona, Ohio, and New Jersey, have taken actions to try and stem prediction-market growth—including through cease-and-desists—Minnesota is the first state to enact an outright ban via legislation.
Selig focused on potential impacts to the agriculture industry in Minnesota, not sports. “Minnesota farmers have relied on critical hedging products on weather and crop-related events for decades to mitigate their risks,” he said. “Governor Walz chose to put special interests first and American farmers and innovators last.”
