Minnesota Passes First State-Level Prediction Market Ban — What Bettors Need to Know Before August 1

Minnesota lawmakers approved legislation on Tuesday, May 13, 2026, that would create the first explicit state-level ban on prediction markets in the United States. The bill passed the House 100 to 32 and the Senate 57 to 9, and is now headed to Gov. Tim Walz for his signature. If enacted, the law would prohibit operators like Kalshi and Polymarket from offering contracts tied to sports events, elections, legal proceedings, weather, deaths, and pop culture awards in Minnesota, effective August 1, 2026.

The prediction market language was embedded in an omnibus public safety bill, SF 4760, after a standalone ban bill sponsored by state Sen. John Marty had stalled in the House. The bipartisan support in both chambers gives the legislation enough votes to override a potential veto. Walz, a former football coach and supporter of legal sports betting, has not publicly stated his position on prediction markets specifically, but his attorney general has previously signaled alignment with state-level regulation of the sector.

What Would Be Banned

Under the bill, prediction market operators cannot accept trades in Minnesota on any contract tied to athletic events or individual player stats, games played with cards, dice, or electronic devices, elections or government conduct, civil or criminal legal proceedings, deaths and violent events, natural disasters, short-term weather conditions, and entertainment award ceremonies. The scope is sweeping and would effectively prohibit the full sports and entertainment slate that makes prediction markets like Kalshi appealing to sports fans in the state.

For bettors in Minnesota, this means any sports-related prediction market activity would need to cease by August 1 if the bill is signed. Traditional Minnesota sports betting through licensed sportsbooks remains unavailable in the state, as the legislature again did not pass a standalone sports betting bill this session — leaving Minnesota one of the few states without either licensed sports betting or a path to it before next session.

Legal Challenge Expected From CFTC and Operators

The CFTC has sued approximately five or six states that attempted to block federally regulated event contracts, arguing they are derivatives under federal law rather than gambling products subject to state gaming authority. A similar legal challenge against Minnesota is widely anticipated before August 1. Whether a federal court grants an injunction suspending the ban while the case proceeds will determine whether bettors face an actual blackout date or the law becomes entangled in litigation without near-term impact. Bettors on DraftKings prediction markets or other platforms should monitor developments heading into summer.