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Trump Administration Sues Minnesota to Block Prediction Market Ban
The U.S. Commodity Futures Trading Commission filed suit against Minnesota on Tuesday, seeking to halt enforcement of a new state law that bans prediction markets and imposes felony penalties. The law, signed by Gov. Tim Walz earlier this week, is scheduled to take effect August 1.
May 20, 2:20 PM·1m read2 sources
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U.S. Commodity Futures Trading Commission sued Minnesota on Tuesday in an effort to stop the state from enforcing its new ban on prediction markets. U.S. District Court for the District of Minnesota, asks the court for preliminary and permanent injunctions. It argues that the state law conflicts with federal authority over CFTC-regulated markets.
Background on the Minnesota Law Gov. Tim Walz signed the legislation on Monday.
The measure makes it a felony to create, operate, or advertise a prediction market in the state. The law defines a prediction market as a system that allows consumers to place a wager on the future outcome of a specified event not determined by the performance of the parties to the contract.
Covered events include sports games, wars, mass shootings, acts of terrorism, elections, court cases, deaths, weather conditions, and pop culture events.
Chairman Michael Selig said the Minnesota law turns lawful operators and participants into felons overnight. " — Michael Selig, CFTC Chairman, May 20, 2026 (Ars Technica) Minnesota Attorney General Keith Ellison said he is concerned about the harms of prediction markets on Minnesotans.
" — Keith Ellison, Minnesota Attorney General, May 20, 2026 (Ars Technica) The CFTC said the 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.
