Minnesota Governor Tim Walz signed law outlawing prediction‑market platforms, a crime to host or advertise any service that lets users wager on outcomes. Sites such as Kalshi and Polymarket must exit the state by August or face felony charges. The ban also covers VPNs that could mask a user’s location. Legislation defines prediction markets broadly, covering wagers on elections, entertainment events, and word choices.

The move arrives amid a broader clash between states and the federal CFTC, which argues that prediction markets fall under its exclusive jurisdiction. The commission has already sued five states, claiming the industry should be regulated nationally. Minnesota’s bill carves out weather‑related contracts after pressure from farmers who rely on such hedges for crop risk management. The agency claims uniform rules protect investors nationwide.

Critics say the ban threatens a tool that has become a multi‑billion‑dollar conduit for sports betting and real‑time event speculation, with more than 85 % of Kalshi’s volume tied to athletics. Legal scholars note that over 20 lawsuits already challenge the state‑versus‑federal split, and the Minnesota case is likely to become a benchmark for future jurisdictional fights.