The Minnesota Senate has voted 56-10 to advance Senate File 4511 to the state’s House of Representatives, which could implement a ban on prediction market operators and event contract trading.
The legislation was originally brought forth by Senator John Marty, who spoke on SF 4511 following its advancement from the Minnesota Senate.
“We are working to stop prediction markets in Minnesota. Unless we act quickly, prediction markets will create a massive increase in gambling addiction, and will undermine lawful, regulated gambling in Minnesota.
“Prediction markets are nothing more than gambling, but they have found loopholes to circumvent our laws and allow sports betting on their platforms. I’m concerned that the rapid increase in access to prediction markets will create a spike in gambling addiction and financial loss, hurting Minnesota families.”
If passed, SF 4511 would prohibit any prediction market offerings tied to sports, casino-style gambling, people, elections, catastrophes and death in Minnesota.
Marty continued: “In addition, it will dramatically cut into the revenue of Minnesota’s regulated gambling, including charitable gambling, casinos and racetracks.
“We not only have bipartisan support on this issue but also support from lawmakers on both sides of the sports betting debate. I encourage the House to act on this legislation quickly to ensure we uphold the integrity of Minnesota’s gambling laws.”
The filing also states prediction market operators attempt to “circumvent state gambling laws” by claiming to use future contracts rather than typical bets.
At the time of writing, Minnesota has yet to pass legislation which would legalize any form of online sports betting or online casino gambling.
Legislation to ban prediction markets has also been introduced in states such as Kentucky, although Governor Andy Beshear chose to veto House Bill 904 on April 14, which attempted to prohibit operators from offering event contract trading.
Despite the rejection from Beshear, Kentucky lawmakers could overrule his veto if a certain majority of members from both the House of Representatives and state Senate vote to pass the legislation without Governor approval.
The CFTCs launched an Innovation Task Force aimed at developing regulatory clarity for emerging technologies within US derivatives markets on March 25, including prediction markets and event contracts
