Minnesota governor signs law banning event contracts; federal lawsuit follows
Minnesota Gov. Tim Walz signed legislation on Monday making it illegal to offer or advertise event contracts on prediction market platforms. A federal lawsuit challenging the ban followed. The law was enacted as part of larger legislation.
Creates a direct conflict between state-level prohibition and federal CFTC-regulated prediction market operations, setting up a test of preemption doctrine that could affect how other states regulate event contracts.
Minnesota becomes the third state after Ohio and Pennsylvania to force Kalshi and Polymarket into active litigation over state-level event-contract bans, with Wisconsin and federal tribal-sovereignty fights now forming a five-front compliance crisis ahead of the platforms' planned fall sports expansion.