The Trump administration filed a lawsuit yesterday seeking to block Minnesota’s new ban on prediction markets. The law, signed by Governor Tim Walz on Monday, makes it a felony to create, operate or advertise any platform that lets users wager on future events. It targets everything from sports scores to elections and weather.

The U.S. Commodity Futures Trading Commission, which regulates these markets, lodged the suit in federal court, arguing the statute clashes with a federal regime established over half a century ago. CFTC Chair Michael Selig warned that the law would instantly criminalize lawful operators and strip farmers of hedging tools they have relied on for decades.

Minnesota Attorney General Keith Ellison will defend the measure, saying prediction markets prey on vulnerable populations and enrich the ultra‑rich. He framed the ban as a consumer‑protection effort, noting concerns about addiction and the potential for markets to amplify inequality. The state plans to enforce the law when it takes effect on August 1.

If the court grants the CFTC’s request for preliminary and permanent injunctions, Minnesota would be forced to roll back the felony provisions, preserving existing hedging products for agriculture and other sectors. The clash pits state‑level moral legislation against a long‑standing federal framework, raising questions about jurisdiction and the future of regulated betting in the United States.