Senate File 4760, which includes language to ban prediction market operations, was officially advanced by the Minnesota Senate and House of Representatives, now heading to Governor Tim Walz’s desk for approval or denial.
On May 2, the Minnesota Senate had voted 56-10 to advance SF 4511 to the state’s House of Representatives, with language from the bill eventually incorporated into SF 4760 to prohibit the operation or promotion of prediction market platforms.
SF 4760 advanced through the state Senate with a 57-9 vote, as well as the Minnesota House of Representatives 100-32.
Under SF 4760, Minnesota regulators would be granted the ability to issue cease-and-desist letters to prediction market operators conducting business in the state, as well as classify such activity as a felony.
Governor Walz has until May 18 to either approve or veto SF 4760, although choosing to take no action would still result in the legislation becoming law by August 1.
Even if SF 4760 gains Walz’s approval, however, prediction market operators and the Commodity Futures Trading Commission (CFTC) would still be able to take legal action against Minnesota regulators and request a hearing if issued a cease-and-desist order.
The legislation bans prediction market platforms offering event contract trading on numerous categories, including sports, pop culture, politics, war, legal actions and terrorism.
In March, the Social Gaming Leadership Alliance (SGLA) responded to the introduction of Minnesota SF 4474 and HF 4410, calling on lawmakers to regulate social plus games instead of banning them.
SGLA said social plus games are used by hundreds of thousands of adults in the state and argued a ban would penalize businesses currently operating within that framework.
The Minnesota Lottery signed a new contract with Scientific Games on April 20 to undergo a ‘major tech modernization,’ joining the Ohio Lottery, New Mexico Lottery and Loto-Québec in collaborating with the supplier
