Judge blocks first state law that would have banned prediction markets
A federal judge has issued a preliminary injunction blocking a Minnesota law that sought to ban prediction markets. The court suggested that the state's total ban likely conflicts with federal authority, as many of these event contracts qualify as regulated financial swaps.
Why it matters
The ruling highlights the ongoing jurisdictional conflict between state-level gambling regulations and federal financial oversight of emerging prediction markets.
Preempted Judge blocks first state law that would have banned prediction markets Judge may allow Minnesota to ban some types of bets, but not all of them.
27 Credit: Getty Images | AFP/Martin Lelievre Credit: Getty Images | AFP/Martin Lelievre Text settings Story text Size Small Standard Large Width * Standard Wide Links Standard Orange * Subscribers only Learn more Minimize to nav Minnesota, the first US state to prohibit prediction markets, was prevented from enforcing the law by a federal court ruling just days before the ban was scheduled to take effect. But while Minnesota was stopped from enforcing a total ban, the state may ultimately be allowed to prohibit some types of prediction-market wagers.
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