A Minnesota Senate committee advanced Senate Bill 4511, which would prohibit specified prediction-market contracts in the state. The bill would treat operating such a market as a felony, with a possible five-year prison term or $10,000 penalty; a separate sports-betting proposal was discussed but not put to a vote.
Prediction-market operators could face felony exposure and enforcement action if the bill becomes law.
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The American Gaming Association and other trade groups are urging US lawmakers to prohibit sports-related trading on prediction markets. The groups argue that the Commodity Futures Trading Commission has exceeded its authority, while bipartisan legislation introduced in March would bar the agency from permitting sports and casino-style event contracts.
Player unions representing the NFL, MLB, NBA, MLS and NHL asked the CFTC to bar contracts based on negative outcomes or events manipulable by one person. In a submission to the agency, they cited athlete safety and sports integrity risks; the CFTC’s comment period drew more than 1,500 submissions.
Minnesota Governor Tim Walz signed an executive order barring state agency employees from using confidential or non-public work information to participate in prediction markets. The prohibition applies whether or not an employee makes a profit, and violations may lead to discipline, including dismissal. The order follows a federal judge’s preliminary injunction blocking implementation of a state law banning prediction markets.
A federal judge in Minnesota has granted a preliminary injunction against the state's ban on prediction markets. The judge found the law is likely preempted by federal authority.
It was reported that a preliminary injunction stopped Minnesota implementing its law banning prediction markets. The interim ruling favours Kalshi and Polymarket without settling the wider legal questions.