Minnesota Running Out Of Time In Bid to Ban Prediction Markets
Mike Goodpaster Published 12/05/2026
The Minnesota Senate has taken a giant step toward becoming the first U.S. state to issue a ban on prediction markets operating in the state. The Senate voted 56-10 in favor of Bill SF 4760, which includes language that would ban prediction markets from operating in Minnesota.
However, there continues to be resistance to the prediction market ban in the State House. Both the Senate and the House must agree to support the bill before it can go to the desk of Minnesota Governor Tim Walz to be signed into law. The Minnesota Legislature will adjourn in mid-May, so time is running out on the passage of this bill.
Republican leadership in both houses is opposing the Minnesota ban proposal
The Senate vote would certainly suggest that there's serious backing for a prediction market ban in Minnesota. However, dig a little deeper, and you'll discover that it's not nearly that likely to happen.
Bill SF 4760 is an omnibus public safety bill. The language banning prediction markets is just one aspect of the contents of this bill. That language was an addition as an amendment to the bill. It was moving over from the Senate-approved bill SF 4511. SF 4511 was a standalone bill. Its specific designation was the banning of prediction market event contracts on politics, war, weather, and sports, among other topics.
A seven-member bipartisan conference committee also approved SF 4760. Then they were sending it back before both the House and Senate, seeking final approval. By passing the bill into law, it would be making it a felony to host or advertise a prediction market in the state.
Minnesota lawmakers see prediction markets operating in a grey area
Sports betting, both retail and online, remains against the law in Minnesota. State lawmakers view the federally regulated prediction markets as an attempt to sidestep Minnesota law to permit sports betting in the state.
“We have seen this explosion just in under a year, you can now bet on almost anything, and all of the regulations and safeguards that Minnesota and states around the country have been putting in for years don’t apply,” Rep. Emma Greenman (DFL-Minneapolis) told MPR News.
Greenman views it as essential that state lawmakers pass the prediction market ban. She insists that such a move “prohibits unregulated shadowy prediction markets and preserves our carefully crafted rules and safeguards around what gambling is.”
The ban would not issue any penalties to people in Minnesota who were found to be using a prediction market site. However, Minnesota politicians believe the prohibition would help protect Minnesotans from potential problem gambling issues that the ease of use offered by prediction markets could facilitate.
Republicans issue warning of potential legal action ahead
Regulation of prediction markets is taking place at the federal level under the Commodity Futures Trading Commission (CFTC). The U.S. government has been staunch in flexing its muscles against any attempt by states to regulate these sites.
There are already five states facing legal action from the CFTC. All of the suits are over attempts to regulate prediction markets on a state level. Republican leadership in the Minnesota State Legislature cautioned that their state could be next on the list.
“If we pass this, we are guaranteed (to be) buying at least one lawsuit, probably multiple lawsuits that the state of Minnesota will have to defend,” House Republican Leader Harry Niska said.
Minnesota lawmakers have until Monday, May 18, to decide on whether to go ahead with the ban. That's when the State Legislature adjourns for the summer.