Minnesota has just passed a law banning prediction markets. (Utah seems likely to follow
About f%$#ing time. This is a profoundly wasteful, corrupt, and unproductive activity.
Of course, because it is a corrupt activity, and one of Trump's sons is on the payroll of the two largest players in the space, Polymarket and Kalshi, so the Trump administration promptly sued to prevent the law from going into effect.
The Trump administration yesterday sued Minnesota in an attempt to block the first state law that prohibits prediction markets.
While other states imposed restrictions on prediction markets, Minnesota banned them outright in a law signed by Gov. Tim Walz on Monday. The US Commodity Futures Trading Commission announced a lawsuit against the state, saying that Minnesota’s “new legislation represents the most aggressive move by a state to shut down CFTC-regulated markets and undermine the federal regulatory regime set up by Congress more than 50 years ago.”
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The Minnesota law makes it a felony to create, operate, or advertise a prediction market. The CFTC asked the court for preliminary and permanent injunctions to prohibit Minnesota from enforcing the law, which is scheduled to take effect on August 1. The case was filed in US District Court for the District of Minnesota.
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The Minnesota law defines a prediction market as “a system that allows consumers to place a wager on the future outcome of a specified event that is not determined or affected by the performance of the parties to the contract.” The law’s specified events include but are not limited to sports games, wars, mass shootings, acts of terrorism, elections, court cases, deaths or assassinations, weather conditions, and pop culture events such as awards or release dates.
That last bit sounds an awful lot like the Marine Insurance Act of 1746, which was an unalloyed good.
Shut them down.
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