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 to stem prediction-market growth—including through cease-and-desists—Minnesota is the first state to enact an outright ban via legislation.
The CFTC, which argues it has exclusive jurisdiction over the industry, isn’t having it. The federal regulator is asking for an order that would stop the law from going into effect on Aug. 1, according to the complaint.
