Minnesota has approved new legislation targeting prediction market activity in the state including in a wider public safety bill signed by Governor Tim Walz on 18 May 2026. The prediction markets ban is scheduled to take effect on 1 August 2026.

• The bill defines prediction markets as platforms where consumers place wagers on future events and outcomes. Covered topics include sports, elections, court decisions, weather events, public emergencies and entertainment-related events. The wording also includes bets linked to whether a person will make a public statement.
• Under the prediction markets ban, operating or facilitating these markets would become a felony offence in Minnesota. The legislation applies to companies creating, managing or supporting such platforms. It also covers event listings, pricing systems, settlement services and transaction processing tied to wagers.
• The bill also targets companies providing technology or financial services linked to prediction market activity. Advertising or marketing products that support banned transactions could also trigger felony liability. The language extends beyond operators to third-party service providers connected to the sector.
• Minnesota lawmakers included exceptions for activities that are not legally classified as betting under state law. Certain regulated contracts and financial products may also fall outside the scope of the restriction. The bill does not specifically mention federally regulated prediction exchanges by name.
• The measure was included within Minnesota Senate File 4760, a broader omnibus public safety package passed during the 2026 legislative session being signed by Governor Walz into law on 18 May 2026. The relevant prediction market provisions become effective from 1 August 2026.
• As response the CFTC (Commodity Futures Trading Commission) sued Minnesota on 19 May 2026 to block the state’s new prediction markets ban before it takes effect on 1 August. CFTC Chairman Michael S. Selig said the law would turn “lawful operators and participants in prediction markets into felons overnight” and warned it could affect federally regulated weather and crop-related contracts. The regulator also confirmed similar legal actions against Arizona, Connecticut, Illinois and New York.
• The Minnesota prediction markets ban arrives as several US states continue reviewing event contract products tied to sports and political outcomes. Regulators and lawmakers in multiple jurisdictions have raised concerns over whether such products resemble sports betting. Industry groups and exchange operators have argued that some contracts fall under federal commodities regulation instead.

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