Minnesota Law Banning Prediction Markets Creates Victimless Crime
Minnesota has enacted a law banning prediction markets, making it the first state to criminalize participation in these platforms. The law was introduced after a senator faced penalties for insider trading on a prediction market, leading to a broader ban that includes various types of prediction markets. Critics argue that the law lacks a clear victim and imposes severe penalties on individuals and businesses involved in these transactions.
- ▪Minnesota's new law makes it a felony to create or participate in prediction markets.
- ▪The law was signed by Governor Tim Walz after being co-authored by Senator Matt Klein.
- ▪The CFTC has filed for a preliminary injunction against the law, claiming it conflicts with federal regulations.
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Financial Regulation Minnesota Law Banning Prediction Markets Creates Victimless Crime A Minnesota senator got fined for insider trading on a prediction market. His response was to ban the platforms for everyone in the state. Tosin Akintola | 5.21.2026 5:20 PM Share on FacebookShare on XShare on RedditShare by emailPrint friendly versionCopy page URL Add Reason to Google Media Contact & Reprint Requests <img src="https://d2eehagpk5cl65.cloudfront.net/img/c800x450-w800-q80/uploads/2026/05/Minnesota-Prediction-Market-B-5-21-800x450.jpg" style="max-width: 100%; height: auto" width="1200" height="675" title="Minnesota statehouse" alt="Minnesota statehouse | Illustration Credit: Adani Samat. Photo: Ej Rodriquez Photography/Dreamstime" /> (Illustration Credit: Adani Samat.
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