Minnesota prohibits prediction markets, promptly gets sued by Trump admin
Summary
Minnesota enacted a law banning the creation, operation, or advertisement of prediction markets, labeling it a felony. The Trump administration responded by suing Minnesota, asserting that federal law (the Commodity Exchange Act) preempts state regulation and that CFTC-regulated markets should remain under federal oversight. The article contextualizes the case with prior court rulings and ongoing debates over the regulation of prediction markets like Kalshi and Polymarket.