Donald Trump · DOJ · Polymarket · Decrypt
The conflict is likely to ultimately be decided by the U.S. Supreme Court
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On Monday, Minnesota became the first state to outright ban prediction market platforms.
Key facts
- The conflict is likely to ultimately be decided by the U.S. Supreme Court
- On Monday, Minnesota became the first state to outright ban prediction market platforms
- But farmers have relied on such CFTC-regulated futures contracts for decades, which have never stirred controversy among state gambling regulators
- This week, Minnesota became the first state in the country to ban prediction markets—and hours later, the Commodity Futures Trading Commission and Department of Justice sued the state
Summary
Minnesota became the first state to ban prediction markets, making it a felony to operate or advertise such platforms. Hours later, the CFTC and DOJ sued the state, arguing the ban illegally interferes with federal authority. The clash is the latest escalation in a broader fight between states and the Trump administration over prediction market regulation. This week, Minnesota became the first state in the country to ban prediction markets—and hours later, the Commodity Futures Trading Commission and Department of Justice sued the state over the prohibition, claiming it was illegal. The whipsaw turn of events marks the latest escalation in an all-out jurisdictional war between states and the Trump administration over the fate of prediction markets platforms like Kalshi and Polymarket.