Minnesota prohibits prediction markets, promptly gets sued by Trump admin

Minnesota passed the first outright state ban on prediction markets, making their creation, operation, or promotion a felony.

The Trump administration’s CFTC sued in federal court to block enforcement before the law takes effect on August 1.

The agency argues prediction markets fall under federal oversight, setting up a preemption fight with Minnesota.

The case could shape whether states can outlaw these markets and affect trading platforms, hedging tools, and election or sports markets.