Minnesota Governor Signs Law Criminalizing Prediction Market Operations
Minnesota Governor Tim Walz signed a bill on May 19 making it a crime to operate, host, or promote prediction market platforms in the state starting August 1. Prediction market platform Kalshi filed a federal lawsuit challenging the law, arguing it violates the Supremacy Clause by infringing on the CFTC's exclusive jurisdiction under the Commodity Exchange Act. The lawsuit also claims the advertising restriction violates the First Amendment. The CFTC filed a motion on May 19 opposing the state law. This follows similar legal challenges by Kalshi that won preliminary injunctions in New Jersey and Arizona. The regulatory environment for prediction markets is tightening globally, with recent bans in Indonesia, Spain, and India. A U.S. House committee is also investigating prediction markets. The lawsuit highlights ongoing tensions between state and federal regulation of financial derivatives.
Key facts
- Minnesota law criminalizes operating prediction markets starting Aug 1.
- Kalshi files federal lawsuit challenging law on Supremacy and First Amendment grounds.
- CFTC filed motion on May 19 opposing Minnesota's state law.
- Kalshi won preliminary injunctions against similar laws in New Jersey and Arizona.
- Prediction markets face global bans in Indonesia, Spain, and India.