Trump Administration Sues Minnesota Over August Prediction Market Ban as 16 States Challenge Platforms
Updated
Updated · Truthout · May 24
Trump Administration Sues Minnesota Over August Prediction Market Ban as 16 States Challenge Platforms
4 articles · Updated · Truthout · May 24
Minnesota drew a federal lawsuit after passing a law last week that would bar prediction markets from hosting, creating or advertising in the state starting in August.
The Trump administration says the CFTC alone can regulate platforms such as Kalshi and Polymarket, framing state crackdowns as interference with federal financial-market authority.
CFTC Chair Michael Selig warned states including Wisconsin, New York and Arizona last month that the agency would sue if they tried to regulate prediction markets.
The fight now spans 16 states, even as a New York Times report said the administration has sidelined CFTC staff who pushed for tougher oversight or questioned the markets' ties to Trump's family.
With soldiers betting on state secrets, can regulators prevent these markets from becoming a national security risk?
Are prediction markets the future of finance or just a new form of unregulated online gambling?