---
title: "Trump administration sues over Minnesota prediction markets ban"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/287082346.md"
description: "The Trump administration has filed a lawsuit against Minnesota over its new law banning prediction markets, claiming it infringes on the Commodity Futures Trading Commission's (CFTC) exclusive regulatory authority. The law, signed by Governor Tim Walz, prohibits hosting or advertising prediction markets and is set to take effect on August 1. The CFTC argues that allowing this law to stand could lead to felony prosecutions for exchanges involved in these contracts."
datetime: "2026-05-20T06:20:12.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/287082346.md)
  - [en](https://longbridge.com/en/news/287082346.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/287082346.md)
---

# Trump administration sues over Minnesota prediction markets ban

The Trump administration sued Minnesota on Tuesday over the state’s new law banning prediction markets.

The Commodity Futures Trading Commission (CFTC) has repeatedly sued states in recent months over efforts to regulate or restrict the platforms, arguing it has exclusive jurisdiction over sites like Kalshi and Polymarket.

“If Minnesota’s law is permitted to go into effect, the exchanges that offer these longstanding contracts—as well as those who partner with them—can be prosecuted as felons,” the lawsuit reads.

“This flagrant and unprecedented incursion into the Commission’s exclusive regulatory sphere must be preliminarily and permanently enjoined,” it continues.

Minnesota Gov. Tim Walz (D) signed the measure into law Monday, barring individuals from hosting or advertising prediction markets in the state. It is set to go into effect on Aug. 1.

It marks the latest push by states to crack down on the platforms, with several accusing them of running illegal gambling operations.

Prediction markets, which allow users to place wagers on the outcomes of various events, argue they are distinct from traditional gambling.

The CFTC has become a key ally under the leadership of Chair Michael Selig, who was confirmed by the Senate in December. In February, he announced he would challenge any state effort to regulate prediction markets. Selig has since filed lawsuits against Arizona, Connecticut, Illinois, New York and Wisconsin.

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