Minnesota Governor Tim Walz signed a law prohibiting contracts tied to future political, economic or social outcomes, with an exception for weather-related events. The report says the Commodity Futures Trading Commission has sued to block the law, arguing that it conflicts with federal regulatory regimes.
The law creates a state-level restriction on prediction-market contracts while a federal legal challenge is under way.
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It was reported that a Washington court ordered Kalshi to withdraw most event contracts and restrict related advertising. The state appeals court denied a stay, while the order permits certain financial and commodity contracts to continue.
Nevada representative Dina Titus has proposed the Fair Markets and Sports Integrity Act to bar federally regulated exchanges from listing contracts tied to sports contests and similar outcomes, according to the report. She argues prediction markets avoid obligations applied to licensed gambling operators; the CFTC has opposed state efforts to regulate the platforms.
Reportedly, Michigan Attorney General Dana Nessel has obtained a preliminary injunction against Kalshi. The order prevents Kalshi from providing sports betting contracts to people in Michigan.
Most sports fans in the United States are not using prediction markets, according to an FGS Global survey. The New York-based advisory and communications consultancy polled Americans on how they are responding to new opportunities in sports, including sports betting and sports event contracts.
US Senator Bernie Moreno introduced a resolution proposing to prohibit sitting senators from trading event contracts on prediction markets. The proposed measure would amend Senate rules; its prospects remained uncertain, although the report said it could attract bipartisan support.