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Minnesota Gov. Tim Walz has signed the nation's first law banning prediction market sites from operating in the state, the most far-reaching crackdown on massively 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 advertise a prediction market, which it defines as a system that lets consumers place a wager on a future outcome, like sports, elections, weather, 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.

It would force prediction market sites like Kalshi and Polymarket to leave the state, or face possible felony charges. The law takes effect in August.

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[-] Doomsider@lemmy.world 2 points 1 day ago* (last edited 1 day ago)

"This section is effective August 1, 2026. Sec. 3. [609.7615] PREDICTION MARKETS. (a) As used in this section, the following terms have the meanings given. (b) "Athletic event" means a sports game, match, or activity, or series of games, matches, activities, or tournaments involving the physical proficiency of one or more players or participants. Athletic event includes horse racing as defined in section 240.01, subdivision 8. (c) "Esports event" means a competition between individuals or teams using video games in a game, match, contest, or series of games, matches, or contests or a tournament, or by a person or team against a specified measure of performance which is hosted at a physical location or online. (d) "Game of skill" means a game, match, or tournament, or a series of games, matches, and tournaments involving the dexterity or mental skill of one or more players or participants. Game of skill includes an esports event. (e) "Prediction market" means 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, including but not limited to: (1) an athletic event or game of skill, or portions thereof or individual performance statistics therein; (2) any game played with cards, dice, equipment, or any mechanical or electronic device or machine; (3) war, state or national emergencies, natural or human-made disasters, mass shootings, acts of terrorism, or public health crises, or the ancillary effects thereof; (4) any event or events happening to a natural person or group of people; (5) a federal, state, or local election, or the actions or conduct of the federal, state, or local government and the government's agencies, employees, and officers; (6) legal actions, including but not limited to a civil or criminal suit, grand jury action, jury trial, settlement, plea, or conviction; (7) the death, assassination, or attempted killing of a person or group of persons, or mass casualty events; (8) short-term weather events or conditions; (9) events in popular culture, including but not limited to awards and the date a piece of entertainment will be released; and (10) whether a person will make a particular statement. (f) "Wager" means a contract, including a prediction market contract, whereby the parties to the contract agree to a gain or loss by one to the other of money, property, or benefit. Subd. 2. Prediction markets; hosting prohibited. A person is guilty of a felony if the person, for consideration and as part of a business: (1) creates a prediction market; (2) operates, manages, or controls a platform or system intending that consumers will use the platform or system to make wagers in a prediction market; (3) intentionally facilitates the operation of a prediction market by: (i) identifying or listing events knowing the events will be used by consumers to make wagers; (ii) accepting, holding, or directing the disposition of money or other things of value for the purpose of allowing consumers to make wagers or to settle wagers made by consumers; (iii) determining, administering, or enforcing the terms, pricing, or settlement of wagers made by consumers; (iv) regularly or continuously acting as a counterparty to wagers made by consumers by entering into a wager, offering to enter into a wager, or taking a temporary position in a wager that may be replaced by a different consumer; or (v) setting or adjusting the prices, odds, or terms that apply to wagers entered into by consumers;

(4) provides data, information, or verification services, including the provision of event outcomes, directly to a prediction market knowing that the data, information, or verification services will be used to allow consumers to make wagers or to settle wagers made by consumers in violation of this section; or (5) provides supportive services to a prediction market or consumer knowing that the services will be used to identify a consumer's location, transfer money, or make or process payments for the purpose of allowing consumers to make wagers or to settle wagers made by consumers in violation of this section.

Subd. 3. Prediction markets; advertising prohibited. Whoever advertises or markets financial or technological products that promote transactions prohibited under this section is guilty of a felony. Subd. 4. Exceptions. Subdivision 2 does not apply to: (1) activities that are not bets under section 609.75, subdivision 3; and (2) contracts authorized and regulated under chapters 59A to 79A."

The way I read it is a VPN provider should block users in this state from connecting to prediction betting sites to be safe.

this post was submitted on 19 May 2026
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