Minnesota’s Ban on Prediction Markets Moves to Senate Floor
(AsiaGameHub) - Lawmakers in Minnesota have advanced a bill to ban prediction markets—potentially the first state-level legislative prohibition of its kind in the U.S. The Senate Finance Committee approved the measure unanimously on Friday, sending it to the full Senate for consideration. Good to Know The legislation targets prediction markets linked to sports, politics, court decisions, legislative actions, and violent incidents. Legal retail or online sports betting is not permitted in Minnesota. Prediction market operators will likely challenge the bill in court if it becomes law. Minnesota Focuses on Event Contracts Ahead of Senate Vote Sen. John Marty is pushing the bill as a way to clarify Minnesota’s gambling laws. He argues that prediction market companies use federal commodities rules to frame event contracts as investment products, while marketing them to consumers as wagers on real-world outcomes. The bill now awaits a vote on the Senate floor. If senators pass it, the House must also approve the measure before it can become law. The proposal covers a wide range of event contracts. Sports contests, elections, legislative actions, court rulings, and events involving death or violence would all fall under the ban. However, Minnesota will still allow existing exceptions like the state lottery, raffles, and limited social betting—including informal March Madness pools.The legislation also narrows protections for futures contracts. Under the bill, a futures product would lose its exemption if a company structures or markets it like a betting product. Marty told the Senate Finance Committee that prediction markets have spread quickly, creating confusion over where investing ends and gambling begins. He also noted that the measure does not add new criminal penalties or fresh enforcement powers. Instead, supporters say it gives regulators clearer ground to stand on under current law. A legal fight is likely. Prediction market operators, and possibly federal officials, have argued that federal regulators hold exclusive authority over these platforms. Minnesota would thus test how far state gambling laws can extend against event contracts. The debate also comes as Minnesota remains one of 11 states without legal retail or online sportsbooks. A sports betting legalization bill introduced during the current legislative session has made little progress and appears unlikely to pass. This article is provided by a third-party. AsiaGameHub (https://asiagamehub.com/) makes no warranties regarding its content. AsiaGameHub delivers targeted distribution for iGaming, Casino, and eSports, connecting 3,000+ premium Asian media outlets and 80,000+ specialized influencers across ASEAN.
