A new state law in Minnesota making the operation of a prediction market a crime has gained the attention of the federal government, which is suing to block the state measure.
The law makes Minnesota the first state in the nation to issue an outright ban on prediction markets such as Polymarket and Kalshi, which allow users to buy and sell “event contracts” that outline predicted outcomes of any real-world event.
The online platforms have attracted millions of bettors wagering on everything from political and economic events to sports and celebrity outcomes.
“This Minnesota law turns lawful operators and participants in prediction markets into felons overnight,” U.S. Commodity Futures Trading Commission (CFTC) Chairman Michael S. Selig said in a May 19 statement on the lawsuit. The CFTC regulates derivatives markets….