Minnesota has enacted a felony ban on prediction markets, becoming the first state to do so. The Commodity Futures Trading Commission and Department of Justice have filed a lawsuit against the state, claiming the ban violates federal law.
Minnesota's new law makes it a felony to create or operate prediction markets within the state. In response, the CFTC and DOJ have sued Minnesota, arguing that the ban is illegal under federal law. This development highlights ongoing tensions between state regulations and federal oversight regarding prediction markets.