The Commodity Futures Trading Commission sued Minnesota after Governor Tim Walz signed legislation making it a criminal felony to operate or assist event contracts. The lawsuit challenges the state’s ban on prediction markets.
The case tests how Minnesota’s ban affects prediction market operators and those assisting them.
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Minnesota Governor Tim Walz signed a law prohibiting the operation and advertising of prediction markets not authorised by the state, with effect from 1 August 2026. The law permits weather-related markets; the CFTC has filed a federal lawsuit seeking to block it before it takes effect.
Minnesota's Legislature forwarded a public policy bill containing a ban on prediction markets on 12 May. The measure would make the markets illegal if Governor Tim Walz signs it; the Commodity Futures Trading Commission and market licensees are likely to challenge the law, according to the report.
Minnesota lawmakers approved a conference report on Senate File 4760 and sent it to Governor Tim Walz, according to the report. The bill would bar event-contract trading from 1 August 2026 if signed; it also provides for cease-and-desist orders and potential felony charges for continued operation after an order.
Minnesota’s SF 4511 is advancing to a Senate floor vote and would prohibit most bets on prediction markets, including wagers on weather, court cases, popular culture and election outcomes. Sponsor Sen. John Marty said Kalshi’s claim to be a nationwide legal sports betting app does not comply with Minnesota law.
It was reported that Judge Katherine Menendez blocked Minnesota’s planned ban on most event contracts. Former senator Chris Dodd disputed the ruling’s interpretation of a rule he said should prohibit sports contracts.