world-economy

Minnesota Becomes First State to Criminalize Prediction Market Operations

Gov. Tim Walz signed legislation making Minnesota the first state to ban prediction market platforms, with felony penalties for companies that operate such services. The law targets sites offering bets on sports, elections, weather, entertainment and world events, and extends to supporting services like virtual private networks that could enable users to circumvent the restrictions. Prediction market operators face possible felony charges for hosting or advertising platforms in the state. The statute includes exemptions for event contracts functioning as insurance policies and for securities and commodities transactions. Seven additional states have introduced similar crackdown measures, with Hawaii and North Carolina pursuing statewide bans. The move comes as states confront a growing standoff with the Trump administration over how to regulate the industry.