CFTC and DOJ Sue Minnesota over First State Ban on Prediction Markets, SF 4760

According to The Block, the Commodity Futures and Trading Commission and the U.S. Department of Justice sued Minnesota Governor Tim Walz on Tuesday over a newly signed omnibus bill (SF 4760) that bans prediction markets in the state. The lawsuit was filed less than 24 hours after Walz signed the bill into law. Minnesota's legislation is described by the CFTC as "the first outright ban on prediction markets in the U.S."

The CFTC and DOJ argue that Minnesota is attempting to unlawfully regulate federally overseen derivatives markets that fall under the CFTC's exclusive jurisdiction. The law is set to take effect on August 1. The complaint also states that the statute wrongfully extends criminal liability to banks, payment processors, media organizations, and sports leagues that advertise or provide data tied to prediction markets.