Minnesota becomes first state to ban prediction markets

Key points

• Minnesota becomes first state to ban prediction markets toggle caption Steve Karnowski/Associated Press Minnesota Gov.
• Tim Walz has signed the nation's first law banning prediction market sites from operating in the state, and in response, the Trump administration has sued, teeing up a legal battle over the most far-reaching crackdown on popular services like Kalshi and Polymarket.
• It comes as states confront a growing standoff with the Trump administration over how to regulate the industry, which allows people to bet on virtually anything.
• The new state law makes it a crime to host or a prediction market, which it defines as a system that lets consumers place a wager on a future outcome, like sports, elections, live entertainment, someone's word choice and world affairs.
• The prohibition extends to services supporting prediction markets, like virtual private networks, that could allow consumers to disguise their location and get around the ban.