Federal Regulator Sues Minnesota Over State Ban on Prediction Markets

‘This Minnesota law turns lawful operators and participants in prediction markets into felons overnight,’ CFTC Chairman Michael Selig said.
Federal Regulator Sues Minnesota Over State Ban on Prediction Markets
An app for Kalshi is shown in Chicago, Ill., on Feb. 25, 2026. Scott Olson/Getty Images
|Updated:
0:00

A new state law in Minnesota making the operation of a prediction market a crime has gained the attention of the federal government, which is suing to block the state measure.

The law makes Minnesota the first state in the nation to issue an outright ban on prediction markets such as Polymarket and Kalshi, which allow users to buy and sell “event contracts” that outline predicted outcomes of any real-world event.