SafeBets said its platform is exempt from Minnesota's new law criminalising prediction market operations, which is due to take effect in August 2026. The company said users do not deposit or risk money, and that its prize pools come from trading gains rather than participant losses; the exemption claim is SafeBets' own interpretation.
The law's scope may affect whether prediction platforms can continue operating in Minnesota.
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Minnesota state authorities argued in a court filing that the CFTC cannot regulate prediction markets covering sports, politics and other events. The filing contends that federal law does not override state authority and that Kalshi and Polymarket should be barred from offering these markets to Minnesota residents. It also alleges that President Donald Trump’s stance on the sector may benefit his business interests.
California Attorney General Rob Bonta and Minnesota Attorney General Keith Ellison criticised the CFTC’s approach to prediction-market oversight, arguing that states are better placed to address gambling-related harms. The CFTC claims exclusive jurisdiction over the platforms, while the dispute follows its lawsuit against Minnesota over the state’s ban on prediction markets.
Polymarket filed a lawsuit in federal court against Minnesota, seeking to block the state’s law restricting event-contract trading before it takes full effect. The company argues the law conflicts with federal authority and violates its speech rights; the complaint names Governor Tim Walz and Attorney General Keith Ellison as defendants.
Kalshi filed a lawsuit seeking to block Minnesota’s law banning prediction markets from 1 August 2026. The company argues the measure conflicts with federal authority over contract markets and violates First Amendment rights, and is seeking an injunction while the case proceeds. Minnesota Attorney General Keith Ellison said the state intends to defend the law.
KalshiEX LLC has sued Minnesota officials, arguing that the state law signed by Governor Tim Walz conflicts with federal authority over event contracts. The company says the law exposes it to felony charges if enforced; the case follows a CFTC motion filed on 19 May.