Minnesota Enacts First Statewide Ban On Online Prediction Markets
Gov. Tim Walz signed a law banning online prediction market sites from operating or advertising in Minnesota on May 19, 2026, a measure that could trigger felony charges for noncompliant platforms.[1]
The ban takes effect in August 2026 and explicitly covers systems that let users bet on future outcomes in sports, elections, weather, entertainment, word choices and world affairs.[1] It also bars services such as virtual private networks that firms use to evade location restrictions and allows prosecutors to pursue felony charges against noncompliant platforms.[1]
The statute exempts insurance-like event contracts and traditional securities and commodities.[1] Firms such as Kalshi are expected to challenge the statute in court.[1]
Minnesota is now the first state to enact a statewide ban on prediction markets.[1]
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📌 Key Facts
- On May 19, 2026, Gov. Tim Walz signed a Minnesota law banning prediction market sites from operating or advertising in the state.
- The law defines prediction markets as systems allowing bets on future outcomes and covers sports, elections, weather, entertainment, word choices and world affairs.
- The ban, effective August 2026, also targets services like VPNs used to circumvent location-based restrictions and threatens felony charges for noncompliant platforms.
- The statute exempts insurance-like event contracts and traditional securities and commodities, and it is expected to face legal challenges from firms such as Kalshi.
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