Minnesota Advances Legislation Targeting Prediction Markets

Minnesota’s legislators have introduced legislation that would prohibit certain wagers from being made on prediction markets. These bills are moving through committees amid concerns about uncontrolled betting. Essentially, they would outlaw event contracts on platforms such as Kalshi and Polymarket. 

Senate File 4511 was first introduced to the Senate Judiciary and Public Safety Committee in March by Senators John Marty, Jordan Rasmusson, Mary Kunesh, Erin Maye Quade, and Matt Klein. On April 9, it advanced from the committee and now heads to the Senate Rules and Administration Committee.  

The bill's supporters believe that this closes a loophole in gambling legislation and is necessary due to the rapid expansion of prediction market apps. This attempt to curb the problem happens amid the continued prohibition of Minnesota sports betting, creating an unfair division of the market. 

Both chambers reviewed companion legislation on Thursday, signaling coordinated momentum. The bills would ban wagering on a wide range of topics, including sports, weather, court rulings, and potential legislative actions. 

Sen. Marty also pointed out the dangers of rapid growth, noting that gambling operators are subject to regulations, while prediction markets are not. However, the concept enjoys bipartisan support despite opposition. Some lawmakers and industry observers suggested these markets could serve as an alternative pathway for introducing regulated wagering. 

This contradiction was reflected in the committee's discussions. While the Senate continued to advance the bill, the House leadership appeared reluctant. Republican Party head Harry Niska noted that the bill had failed to meet several crucial deadlines. 

Sports betting bill keeps issue alive

The effort to restrict prediction markets overlaps with a separate, ongoing attempt to legalize sports betting in Minnesota. A new proposal, Senate Bill 4139, reintroduced the issue earlier this session, with adjustments intended to address prior concerns.  

Authored by DFL Sen. Nick Frentz alongside Republican lawmakers, the bill reflects a continued attempt to find common ground on a topic that has resisted resolution for years. 

Minnesota sports betting has remained illegal despite widespread legalization across much of the country. That reality has fueled arguments that unregulated wagering is already occurring, with supporters of legalization pointing to significant offshore activity. Sen. Frentz said the scale of existing betting activity should push lawmakers toward regulation rather than prohibition. 

The bill includes provisions targeting advertising limits, mobile betting safeguards, and protections for tribal stakeholders. Those elements have been central sticking points in previous attempts, where disagreements over control and revenue distribution stalled progress. 

Legislatively, the bill has faced familiar hurdles. After its introduction on March 4, it moved through committee referrals but failed to advance following a 22 to 44 vote against adopting a committee report on March 23. 

This indicates that there are existing differences despite interest in Minnesota sports gambling. Despite the disappointment, the legislation remains one of the proposals for the present legislative session.