TLDR The CFTC and U.S. government sued Minnesota over its new prediction market ban, calling it the most aggressive state crackdown yet Minnesota’s SF 4760 makes it a felony to create, operate, or facilitate prediction markets, taking effect Aug. 1, 2026 The CFTC argues the law threatens traditional derivatives markets including weather and crop contracts used by farmers since the 1990s The agency has now filed lawsuits against six states over prediction market restrictions Minnesota also passed a separate law banning political candidates from betting on their own elections Federal Agency Takes Legal Action Against Minnesota’s Prediction Market Law
The Commodity Futures Trading Commission and the U.S. government have filed a lawsuit against Minnesota over the state’s newly signed prediction market ban. The complaint targets SF 4760, which was signed by Gov. Tim Walz on May 18.
The CFTC described the legislation as the first outright ban on prediction markets in the United States. The agency is seeking declaratory and injunctive relief against the state, Walz, Attorney General Keith Ellison, and Minnesota gambling regulators.
CFTC Chairman Michael Selig criticized the law in a public statement. He said Minnesota is putting special interests first and American farmers and innovators last.
Governor Walz and Minnesota are putting special interests first and American farmers and innovators last.
Minnesota’s new law would make it a felony to trade event contracts in the state, hurting Minnesota farmers who have relied on weather and crop-related event contracts for…
— Mike Selig (@ChairmanSelig) May 19, 2026
Selig warned the law would make it a felony to trade event contracts in the state. He said this would hurt Minnesota farmers who have relied on weather and crop-related event contracts for decades.
The complaint argues the law directly conflicts with the Commodity Exchange